Unified BRICS payment system is achievable, but trust is key hurdle: BRICS Business Council chair

A unified payment system for the 11-member BRICS grouping is achievable, but countries will first need to establish trust, transaction safeguards and an appropriate regulatory framework, Ziaad Suleiman, Chair of the Digital Economy Working Group, South Africa Chapter, BRICS Business Council, said.

In an interview with BusinessLine, Suleiman said interoperability across BRICS payment systems would depend not only on technology but also on countries agreeing on the rules governing data security, transactions and cross-border financial activity.

“A unified payment system for BRICS is certainly achievable. What we need is the right level of trust and an appropriate framework,” Suleiman said.

He said countries would need to establish safeguards and understand how businesses operate in one another’s markets, including the parameters governing trust and security.

“Without these safeguards, countries will naturally have concerns about whether their data is safe and whether transactions are secure,” he said.

The comments come as BRICS countries explore greater financial and payment connectivity, including the use of local currencies for trade. The grouping has expanded to 11 members, increasing the potential scale of any interoperable payments framework while also adding complexity because of differences between member countries’ financial systems and currencies.

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Local currencies need multilateral agreements

Suleiman said there was no single solution to the challenge of enabling local-currency transactions across BRICS.

“I think it’s about choice. It’s about multilateral agreements. It’s about deciding which is their currency of trade. And obviously, each country would want to be trading in its own local currency,” he said.

He added that the feasibility of such arrangements would depend on the level of trade and relationships between individual countries.

“So, if that becomes an issue, again it comes down to trust and what the agreements are. I don’t think there’s a simple answer, to be quite honest, because I think it depends on the level of trade and the relationships,” Suleiman said.

He said greater payment integration could ultimately help cross-border remittances work more efficiently.

Regulatory alignment remains critical

A unified BRICS payment network would therefore require more than connecting payment technologies. Countries would need to agree on common or compatible standards covering transaction security, data protection and the operation of financial institutions across borders.

Suleiman’s comments also highlight the importance of regulatory cooperation as BRICS economies seek to make local-currency transactions more practical.

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The broader digital agenda, he said, must also begin with connectivity. For populations in rural and peri-urban areas, 5G may not always be sufficient or economically viable, making satellite and other forms of connectivity important.

“The starting point is really connectivity, because if you don’t have connectivity and people are not connected to the digital economy, then there is no transaction,” Suleiman said.

He said affordability and accessibility would ultimately determine whether underserved populations could participate in the digital economy.

At the BRICS Business Forum in New Delhi, Suleiman also said South Africa maintained an agnostic approach to technology and was open to working with different partners, with technology choices ultimately needing to be “fit-for-purpose.”

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