Diplomats from the BRICS nations are scheduled to convene in Brazil on Monday to address the trade policies implemented by President Trump. This meeting occurs at a pivotal juncture for the global economy, particularly following the International Monetary Fund’s recent reduction of growth projections due to the repercussions of the US administration’s extensive new tariffs.
Representatives from Brazil, Russia, India, China, and South Africa will gather for a two-day session in Rio de Janeiro, serving as a precursor to the 17th BRICS Summit planned for 6–7 July 2025. Trump has warned of potential 100 per cent tariffs on BRICS nations if they attempt to undermine the US dollar. This could be interpreted as the US response to BRICS’ brand new cross-border payment system: BRICS Pay, an initiative marking a deliberate effort to reduce dependency on the U.S. dollar.
VIDEO: BRICS Stuns the US with New Payment System Launch: Is the Era of Tariffs Over? (Source: Ancient Craft)
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In response to these threats, China is also intensifying its efforts to challenge the dollar’s supremacy by launching a strategic initiative aimed at establishing its own international payment system based on the Cross-Border Interbank Payment System (CIPS), a network comprising more than 1,300 financial institutions spanning 110 nations. This development signifies a crucial shift in the reconfiguration of global financial dynamics, underscoring China’s aspirations for a multipolar economic framework. Cointribune has the story…
IMAGE: Is US dollar hegemony ending? (Source: Cleverrobot)
Luc Jose A. reports for Cointribune…
BRICS: China Officially Launches A Plan To Promote Its Own Payment System
As international monetary tensions intensify, China is accelerating its offensive against the dominance of the dollar. Beijing officially launches a strategic plan to impose its own international payment system. This initiative marks a major turning point in redefining global financial flows, reinforcing China’s ambition for a multipolar economic order. By directly targeting the traditional networks dominated by the West, this manoeuvre now captures the attention of markets, governments, and major financial institutions.
In Brief
- China formalises an ambitious plan to promote its own international payment system.
- Shanghai becomes the nerve centre for developing the CIPS network, a direct alternative to SWIFT.
- Beijing aims to strengthen the use of the yuan in cross-border trade and support its companies abroad.
- The project intends to reduce the BRICS’ dependence on the US dollar and consolidate their financial autonomy.
Beijing Accelerates the Promotion of Its International Payment System
The Shanghai municipal government, with the support of the People’s Bank of China (PBoC), officially launched an ambitious plan to increase the use of the yuan in cross-border transactions.
This plan “aims to develop an independent international payment system” based on the Cross-Border Interbank Payment System (CIPS), a network that already includes over 1,300 financial institutions across 110 countries.
Chinese authorities clarify their objective:
“Increase the internationalisation of the yuan and support the expansion of Chinese companies abroad”
CIPS is presented as a credible alternative to SWIFT, which has so far dominated the international payments sector.
The major pillars of the plan include:
- Strengthening CIPS to promote direct cross-border settlements in yuan;
- Optimising multinational financial services, particularly in Shanghai, to facilitate commercial exchanges;
- Supporting Chinese companies internationally by offering financing and payment solutions alternative to the US dollar;
- Reducing dependence on the SWIFT network and thereby decreasing exposure to external financial pressures.
The strategic choice of Shanghai to lead this offensive is no coincidence. The city plays a pivotal role in the Chinese economy and serves as a laboratory for international financial reforms. This deployment is part of a broader dynamic linked to the Belt and Road Initiative (BRI), which aims to weave a yuan-dominated exchange network.
Towards a Disintermediation of the Dollar in BRICS Transactions
Beyond simply strengthening CIPS, China now expresses its intention to reshape the global financial architecture by offering the BRICS members a true alternative to the dollar.
The project supported by the PBoC indeed plans to “promote cross-border settlements in yuan” among member countries, marking a major strategic shift. The aim is to facilitate exchanges within the economic bloc but also to reduce exposure to the American banking system, seen as a geopolitical leverage.
The development of an autonomous payment ecosystem could profoundly transform the dynamics of international trade. By supporting bilateral financial flows with strategic partners through CIPS, China thus hopes to cement its economic influence while encouraging the adoption of the yuan in global exchanges.
Such a strategy fits into a trend observed in several recent BRICS initiatives, which aim to promote the use of local currencies and establish independent financial institutions.
This evolution raises multiple questions about the future of the international monetary system. If the transition toward a multipolar world in the field of payments accelerates, it could weaken the dollar’s preeminence and trigger profound restructurings in financial markets. Ultimately, the rise of an autonomous BRICS payment system could offer emerging countries greater economic manoeuvring capacity, which would also lead to tensions with defenders of the current monetary order.
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