Is the BRICS Payment System Actually Nonexistent?

The rise of blockchain technology is often hailed as a transformative wave that will shape the future landscape of numerous industries. It's essential to clarify, however, that blockchain is not synonymous with cryptocurrency; the latter is simply one of the many applications that stem from this innovative technology.

One of the most intriguing areas where blockchain has been explored is cross-border payments. However, this domain has also become a hotbed for misinformation—specifically, rumors surrounding a decentralized blockchain-based payment system initiated by the BRICS nations, often referred to as BRICS Pay. Speculations have been rampant online, with some claiming that pilot implementations of the system have already begun in China.

To add a veneer of credibility to these claims, a well-designed “official website” featuring both Chinese and English interfaces emerged. This site asserts that BRICS Pay integrates traditional payment methods, central bank digital currencies (CBDCs), and decentralized finance (DeFi) technologies. It goes further to state that launch confirmations have been obtained from central bank governors of BRICS member states, complete with purported “official data from Chinese pilot regions.”

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However, a closer examination of the website reveals numerous inconsistencies. As an official platform for BRICS Pay, it should reasonably include language versions for key member countries such as India, Russia, and Brazil. The fact that it only offers Chinese and English content raises flags about its authenticity, indicating that it may have been crafted specifically for Chinese investors.

Continued investigation unveiled a startling truth. The so-called authoritative media sources referenced on the website were actually fabricated reports by various self-media channels, devoid of any journalistic integrity. Journalists from Caixin reached out to the central bank, only to receive confirmation that they had no knowledge of any such initiative and had not participated in any related pilot projects.

As the probe deepened, the reality behind the BRICS Pay rumor slowly surfaced: it appeared to be a meticulously orchestrated marketing endeavor by individuals within the cryptocurrency sphere, aimed at artificially inflating the price of a specific cryptocurrency through the dissemination of false information, ultimately to cash out at inflated prices.

This “official site” was actually established by an obscure private company. It not only claimed to detail the pilot implementation of BRICS Pay in China but also linked the initiative to a business known as China Technology Holdings Group, suggesting that the project is spearheaded by this corporation’s “Tech Powerhouse” platform.

Digging deeper through corporate information tools revealed that the China Technology Holdings Group, despite its seemingly governmental nomenclature, is merely a Hong Kong private company registered with a capital of just HKD 10,000. Among its two initial shareholders was even an individual of Nepalese nationality.

Interestingly, this holding group plans to issue a proprietary virtual currency dubbed “Zhonghua Digital Currency,” with high likelihood that this cryptocurrency will be tied to the promotion of the BRICS Pay system in the future. This tactic seems designed to lure investors, inflate currency prices, and eventually allow the perpetrators to cash out at a high point. It is a classic example of profit extraction at the expense of uninformed investors, commonly referred to as “cutting leeks.”

Throughout this farcical scheme, domestic self-media outlets contributed to the chaos, often spreading unverified rumors to attract traffic, and even exaggerating claims that the BRICS Pay system would replace the SWIFT system as the cross-border payment mechanism for international trade among BRICS nations. This reality is profoundly disheartening.

This string of events highlights a new breed of fraud emerging in the realm of international financial investments: one that leverages the public’s lack of financial literacy and enthusiasm for “de-dollarization” and similar trending topics to craft fictitious narratives. These narratives seem to inextricably link newly issued cryptocurrencies to attract investments, ultimately serving the fraudsters' goals to “harvest” unsuspecting investors.

Many investors lacking fundamental financial knowledge and desperately seeking lucrative opportunities often fall prey to malfeasants within the crypto community.

In the face of such fraudulent activities that exploit public enthusiasm, it is imperative for individuals to remain vigilant and to approach various investment information with a critical mindset. Trusting unverified news can lead to significant financial harm. Concurrently, the media, as a significant channel for information dissemination, needs to acknowledge its social responsibility, rigorously vetting reports to avoid providing a platform for false information. Regulatory bodies should also bolster their oversight capabilities to promptly combat misleading advertising and financial scams, thereby safeguarding the legitimate rights of investors.