BRICS payment systems integrated into investment management systems. Are you preparing? Or are you prepared?

The world of payments is swiftly changing (pun intended SWIFT)

The monopoly of the petro-dollar is gone (all oil used to only be purchasable with US dollars – that has ended)

The US dollar as the world’s reserve currency is gone (most countries purchased and held US dollars as a reserve safeguard currency – that has ended)

The only constant is change, and a large change of economy and fiscal management of the world has changed and is changing more. Many systems and operations and ways of exchange globally are evolving away froma centralized banking and into a more dynamic system of exchange.

Currencies are evolving into many, BRICS is rising as a domiant exchange, many countries are moving away from fiat currencies to asset backed currencies (like gold); how money is used for lending is evolving from banks to private debt and private equity, systems need to evolve to process payments with numerous platforms and countries and manage accounting, tax matrixes and reclaims, regulatory compliance, vast trustee networks of primary and sub-custodian accounts, transfer agencies, custody of assets, KYC, AML, cyber security.

The rise of crypto-currency and use of blockchain technology. Are your system scalable for this fast evolving ecosystem?

This is an interesting time and I am with the passion to be amongst this grand shift.

I personally do not have all the perfect answers, though I have studied and been in finance my lifetime, from childhood, through school and university, work and personal study. I am passionate about finance, systems and technology and enjoy learning and being a part of innovation, intelligence, growth, and joyous success for all.

Here is one article example: https://moderndiplomacy.eu/2024/08/15/prospects-for-brics-new-currency-and-new-payment-system/

Historical Context

The global financial landscape has long been dominated by the U.S. dollar, which not only served as the world’s primary reserve currency but also as the exclusive currency for purchasing oil—known as the petro-dollar system. This arrangement centralized global economic power significantly. Understanding this historical backdrop is key to appreciating the significance of the recent shifts toward more diversified and decentralized financial systems.

Current Trends in BRICS

The BRICS countries (Brazil, Russia, India, China, and South Africa) are at the forefront of creating alternative financial systems. These nations are increasingly leveraging their collective economic power to establish systems that operate independently of Western financial infrastructure, such as the New Development Bank which aims to fund infrastructure and sustainable development projects in BRICS and other emerging economies. These initiatives could reshape global economic relationships and reduce the historic dominance of Western economies.

Technological Drivers

Technology plays a pivotal role in the transformation of global finance. Blockchain technology, for example, facilitates more secure and transparent transactions, enabling the rise of cryptocurrencies, which offer a viable alternative to traditional fiat currencies. Additionally, advancements in artificial intelligence are revolutionizing financial modeling and risk management, making financial systems more robust and adaptive to the rapidly changing global landscape.

Economic Implications

The shift towards a multi-currency global financial system could lead to a more inclusive economic environment, reducing the vulnerability of global trade to the policies of any single country. However, it also poses challenges such as increased volatility and complexity in financial transactions and regulatory compliance. For businesses and investors, this transition presents both opportunities in emerging markets and new technologies, as well as risks associated with increased economic fragmentation.

Personal Reflection

Having been immersed in the world of finance from a young age, I have witnessed first-hand the evolution of economic systems and technologies. This ongoing transformation resonates deeply with my personal and professional experiences. I am particularly passionate about the integration of technology in finance, which I believe not only enhances operational efficiencies but also democratizes access to financial resources, fostering a more equitable global economic landscape.

Call to Action

I enjoy the exploration of these developments and continue to dig further. Whether in a professional arena in the finance sector, an investor looking for new opportunities, or simply a curious observer, I find engaging with these changes a crucial journey of the economic world. I consider the implications of a decentralized and technologically advanced financial system on our personal and professional life, and think about how I and we can contribute to or benefit from these exciting trends.

Cheers,

Gage Gorman