At the recent BRICS summit, Vladimir Putin called for an alternative international payment system, sparking discussions about de-dollarization. However, fake news quickly spread on social media, claiming Putin had unveiled a new BRICS currency, which was not the case.
According to a report in The Guardian, the summit’s actual focus was on exploring ways to reduce reliance on the US dollar, particularly in light of its use as a political tool.
The fake news circulating over social media mentions that Putin officially unveiled a currency that could replace the dollar at the BRICS Summit.
During the summit, held in the Russian city of Kazan, Putin emphasized the importance of moving away from the US dollar, which he described as being used as a “weapon.” Nearly 95% of trade between Russia and China is already conducted using rubles and yuan, illustrating the shift in bilateral trade away from the dollar.
Putin’s remarks came as Russia seeks to create a settlement and payment infrastructure that would bypass the SWIFT system, an initiative meant to further reduce dependency on Western financial systems.
While the move to de-dollarize the global economy has garnered attention, it also raised concerns among some BRICS members. Brazil and India, for instance, are wary of the group becoming overly pro-Chinese or anti-Western.
Despite the talk of financial independence, the summit’s communique revealed that little concrete progress had been made on establishing an alternative international payment system.
The summit was notable for providing Putin with his largest international platform since Russia’s invasion of Ukraine in February 2022. The event was attended by nine BRICS members, including Indian Prime Minister Narendra Modi, Chinese Premier Li Qiang, and South African President Cyril Ramaphosa.
The summit’s final communique is expected to focus on issues such as global conflict, with a single reference to a joint Brazil-China peace plan for Ukraine. However, Ukrainian President Volodymyr Zelenskyy has rejected this proposal, calling it a “half-hearted settlement plan.”
The event also brought attention to the future of BRICS itself, now in its 16th year. With growing interest from countries in the Global South seeking to join the organization, debates emerged about whether the bloc should expand further.
Brazil, alongside India, voiced concerns about BRICS being reshaped into a purely anti-Western alliance. Eventually, a diverse group of new members was approved, including nations like Cuba, Bolivia, and Turkey, a NATO member, raising questions about the future direction of the organization.
Also Read: BRICS Nations in Intense Talks for Common Digital Currency
