Russia, a BRICS member, has warned that the United States’ domination of global banks and important financial organizations will end shortly. Russian President Vladimir Putin stated that Western-dominated technologies are becoming obsolete, but the BRICS are ushering in a new era that will replace the traditional financial system with a new world order.
Putin weighs in on the end of Western financial dominance
At the VTB Investment Forum in Moscow, Putin stated that blockchain technology, among other things, is being used for international payments. He claimed that the US dollar is no longer the dominant currency and method of payment for cross-border activities.
Many other new technologies have arisen, and the BRICS will adapt, jeopardizing the US dollar’s prospects.
According to experts, in the coming years, this will lead to a real revolution that will finally undermine the monopoly of large Western banks […] not in the best condition.
Vladimir Putin
The Russian president further stated that the interbank messaging system SWIFT has been rendered disreputable due to its inability to connect with Russian institutions; payments in national currencies are replacing it.
Putin asserts that the previous model of globalization is being supplanted by a multipolar model of global economic relations. Due to a technological revolution, Putin predicted that “the monopoly of large Western banks” would end in the coming years.
Russia’s economy amid the Ukraine war
Russia’s export-oriented economy has proven more resilient than either Moscow or its critics anticipated when the West sought to punish and isolate it with broad sanctions for sending soldiers into Ukraine in early 2022.
At the “Russia Calling” business gathering in Moscow, Putin stated that GDP is expected to expand 3.5% this year, rebounding from a 2.1% drop in 2022.
Today, GDP is already higher than it was before the Western sanctions attack,” he went on to say. Russia’s economy has benefited from a significant rise in defense spending and manufacturing for the Ukraine conflict, which Moscow refers to as a “special military operation.
The world has entered an era of radical changes and serious tests not only for specific companies and sectors, but also for whole countries and regions of the world [”’] Only a strong, stable and, I stress, sovereign country will be able to pass this phase successfully, to become one of the growth centres of the new global economy.
Vladimir Putin
The future of Western economies amid BRICS rise
The Western financial system, according to Putin, is becoming technologically obsolete.
It has been resting on its laurels, for so long becoming accustomed to monopolies and exclusivity, to the lack of real alternatives, to the habit of changing nothing, that it is becoming archaic.
Vladimir Putin
In addition, the Russian President accused “Western elites” of attempting to stifle the rise of new international leaders.
You know that now the entire global system of economic relations is going through a stage of fundamental and, as just said, irreversible changes. They are due to the fact that the previous model of globalization is being replaced by a multipolar model.
Vladimir Putin
Putin stated that Russia wishes to establish a “new, truly democratic” global economic model and that the current shift in the global economic landscape and the rise of new leaders is an “objective and largely natural process.”
The elite of Western countries, however, those that find themselves at the top of this process, are trying to slow it down, to artificially restrain growth, as they believe, on the global periphery, which they are used to exploiting, using as a resource, as a source of rent, simply as a colony.
Vladimir Putin
In this regard, Putin stated that “Western elites” use sanctions to maintain their supremacy, “rocking the political situation” and causing conflicts, claiming that they have gone so far as to “abolish the very principles of the market economy that they love to talk about.”
He went on to add that the West began closing their borders “as soon as competitors appeared,” after previously pushing for equal terms and open borders.
He also claimed that the financial infrastructure “based on the predominance of the US dollar and the euro” has been replaced by “a system of settlements in national currencies.”
“Of course, there is still a lot to be done here. This is an obvious thing. But this is being done, and this process will only gain momentum. I will say more, the Western financial system is clearly becoming outdated in terms of technology,” he remarked, adding, “It has become archaic, or is becoming archaic.”
