BRICS, SCO, and EAEU Plan Joint Payment Card and Digital Currency

BRICS, SCO, and EAEU Plan Joint Payment Card and Digital Currency

In a bid to enhance financial integration, the BRICS (Brazil, Russia, India, China, and South Africa), the Shanghai Cooperation Organization (SCO), and the Eurasian Economic Union (EAEU) are poised to introduce a groundbreaking joint initiative. The Chairman of the Board of the Eurasian Economic Commission, Mikhail Myasnikovich, has put forward the idea of establishing a common payment card system and coordinating policies on digital currencies across the three unions.

Collaborative Efforts for Digital Currencies and New Payment System

Speaking at the second edition of the Eurasian Economic Forum in Moscow, Myasnikovich expressed his invitation to the SCO and BRICS to unite their resources and explore collaborative approaches. He emphasized the significance of joint efforts in utilizing digital currencies and launching a shared payment card system.

"We invite our colleagues from the SCO and BRICS to pool our resources. I am talking about the joint approaches to the use of digital currencies and the launch of the common payment card system. We already have appropriate solutions."

Myasnikovich's proposal marks a milestone in fostering financial cooperation among these influential regional alliances. The Eurasian Economic Commission, headed by Myasnikovich since 2020, is entrusted with implementing decisions and upholding the organization's treaties.

One notable achievement mentioned by the EAEU chairman is the substantial share of settlements in national currencies already recorded among its member states, reaching an impressive 80%. Recent disclosures from Russian Prime Minister Mikhail Mishustin further revealed that 70% of settlements between Russia and China are conducted in rubles and yuan, showcasing progress in transitioning away from the dominant role of the US dollar.

The move towards bolstering national fiats aligns with Russia's pursuit of "de-dollarization" and its allies' collective efforts. In the face of escalating geopolitical tensions with the West and the imposition of unprecedented sanctions following Russia's actions in Ukraine, diversifying and reducing dependence on the US dollar has become a significant agenda.

BRICS, established in 2006 as an alternative to the G7, has evolved into the largest bloc in terms of global gross domestic product (GDP). Comprising five of the world's leading emerging economies, BRICS aims to reshape the dynamics of international finance.

The SCO, renowned as the largest regional organization in terms of territory and population, operates as an economic, political, and defense alliance. It holds substantial influence in shaping regional dynamics and fostering cooperation among its member states.

EAEU Heralds New Era of Economic Cooperation 

The EAEU, founded in 2014 by Belarus, Kazakhstan, and Russia, expanded its membership to include two additional former Soviet republics, Armenia and Kyrgyzstan, in 2015. With a focus on economic integration, the EAEU has been actively working towards strengthening economic ties and facilitating seamless trade among its member countries.

The joint payment card and digital currency initiative proposed by the BRICS, SCO, and EAEU alliances heralds a new era of financial cooperation. As the unions converge their efforts, it remains to be seen whether this collaborative effort will come to fruition and whether coordinated policies on digital currencies will become a reality. 

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