Despite the project first being announced as part of the 2024 summit, BRICS Pay has failed to make a significant impact as 2025 arrives. With the economic alliance continuing its de-dollarization efforts and US President-elect Donald Trump issuing a start 100% tariff warning, it appears like it may be now or never for the payment system.
For the past two years, the bloc has sought alternative payment methods to help defend against Western economic dominance and imposed sanctions. Although BRICS has made some progress, it certainly has not been able to challenge the US dollar in any significant way. Now, all eyes are on the importance of 2025 for one of its most important economic plans.
Source: BBC
Also Read: BRICS Fail to Challenge US Dollar in 2024: Can They This Year?
BRICS Pay Faces Critical Year Amid Rising Geopolitical Turmoil
For the last two years, the BRICS bloc has mobilized in a way that has sent ripples through the globe. First formed in 2001, the bloc expanded for the first time in 2023. Now, two years later, it has already doubled its member count while welcoming a secondary tier of partner nations.
However, although its presence has grown, so too have its challengers. With the incoming presidential administration not content to allow the bloc to grow unchecked, the BRICS Pay platform and the group’s de-dollarization efforts look like they’re now or never entering 2025.
US President-elect Donald Trump has recently issued 100% tariff threats on the BRICS alliance specifically. This has greatly affected the bloc and its growth prospects. Although the previous administration allowed its efforts to go unchecked, nations seeking to join the group must now grapple with concerns regarding Western retaliation.
Source: AtlanticCouncil.org
Also Read: BRICS to Ditch US Dollar for Gold-Backed Cryptocurrency?
Moreover, for all that BRICS has attempted over the last year, the US dollar remains unchallenged. More importantly, it has emerged stronger compared to a plethora of alliance currencies. The greenback has appreciated more than 5% since the start of the year, with the Chinese yuan and Indian rupee falling significantly since the start of the year.
Ultimately, the BRICS Pay platform was the alliance’s “step towards a multipolar global economy,” Ramesh Vaidyanathan of the IBA Asia Pacific Regional Forum said. “It could also increase competition between the Western and Eastern economic models, with long-term geopolitical implications,” he warned.
Altogether, BRICS Pay has thus far failed to live up to expectations. With Donald Trump eager to protect the greenback, its road to de-dollarization looks more treacherous than ever. It is now or never for the alliance payment system, indeed.
