Reading Time: 7 minutes

The global financial system users have been used to has been undergoing fundamental reconstruction in recent years. As more countries openly challenge the US dollar’s dominance in international trade and pursue ever greater monetary independence, regional financial alliances are rising as viable alternatives to Western-centric frameworks. 

This trend reflects more than a shift in economic policy — it actually marks a deeper transformation in the balance of global financial power and international relations in general. If everything continues as seen nowadays, the emergence of new financial solutions will reshape the global landscape for generations to come.

One of the such global alliances, driving the change is BRICS (an intergovernmental organization comprising ten countries, namely: Brazil, Russia, India, China, and South Africa, along with newer members including Iran, Egypt, Ethiopia, Indonesia, Saudi Arabia, and the UAE) which is at the forefront of this transformation. Through strategic initiatives encompassing Central Bank Digital Currencies (CBDCs), blockchain-based payment systems, and potentially BRICS’s own stablecoin, the bloc is demonstrating that such cooperation can create viable alternatives to existing financial infrastructure.

This raises a question: What can the region of Latin America do to achieve similar integration on its own territory? The region possesses shared cultural heritage, extensive trade relationships, and complementary economies that should make financial integration more achievable than BRICS’ multi-continental projects. So what’s missing? 

BRICS is making significant strategic moves in reshaping international finance through coordinated efforts that leverage both monetary policy and modern financial technologies. The approach provides a blueprint for regional financial integration that Latin America could adapt and improve upon.

Blockchain Integration for Cross-Border Settlement

BRICS members are actively developing blockchain-based systems for international trade. Russia’s SPFS (System for Transfer of Financial Messages) and China’s CIPS (Cross-Border Interbank Payment System) represent solutions as alternatives to SWIFT. The integration of blockchain technology promises to reduce settlement times from days to minutes while significantly lowering costs. Moreover, in 2025 Brazil authorities announced advanced blockchain-based financial integration for BRICS trade modernization, aimed at improving transactional efficiency among member states. 

Additionally, member countries are actively developing blockchain integration for cross-border settlement using common “BRICS Pay,” to facilitate trade and payments with each other. Based on the BRICS Summit Annual Report, the bloc’s main goal is to “Create and utilize decentralized payment instruments such as BRICS Pay to foster the development of tourism, business, and international trade among BRICS+ countries. 

The implementation of innovative financial solutions such as BRICS Pay will complement the capabilities of existing payment systems and methods, enhancing security, accelerating, and reducing the costs of international transactions.”

A shared payment system is also beneficial for deepened economic ties among BRICS+ nations, reducing dependence on Western financial systems. BRICS Pay and cryptocurrencies would offer businesses decentralized alternatives (B2B, B2C, B2G, C2C, C2G, G2G), ensuring smoother cross-border trade and greater economic resilience.

CBDC Development and Crypto Adoption:

Within BRICS there are members that are making remarkable progress in digital currency adoption. For instance, Brazil has launched the digital real pilot program, where Banco Central do Brasil (BCB) is actively developing actions aimed at issuing the Brazilian sovereign currency in digital format. 

Russia continues developing the digital ruble with pilot programs showing promising results for both domestic and international use. China’s Digital Yuan (e-CNY) is the world’s most advanced CBDC, with over 260 million individual users (as of Q1 2024 PBOC data) and integration into major payment platforms. 

India’s digital rupee has seen significant growth in retail e-Rupee circulation, reaching INR 2.34 billion in FY 2023-24, a substantial increase from INR 57 million the previous year. The pilot program aims for one million daily transactions and has achieved this goal with various banks depositing employee salaries and benefits into CBDC wallets. 

The United Arab Emirates’s Central Bank has announced its intention to issue a retail CBDC – a digital dirham – during the final quarter of 2025. Main target is to ‘accelerate the digital transformation’ of financial services, drive financial inclusion, promote payment innovation, security and efficiency, and achieve a cashless society. 

Besides that, UAE has positioned itself as a crypto-friendly hub, attracting blockchain companies and facilitating crypto-based trade finance. There are other countries of the bloc that are also working on developing their own solutions, creating a new financial ecosystem of tomorrow. These developments collectively demonstrate that BRICS nations are actively implementing financial innovations at scale.

Despite sharing closer cultural, linguistic, and historical ties, Latin America has not yet fully taken the advantage to capitalize on its natural advantages for regional financial integration. This opportunity becomes more glaring when compared to BRICS’ countries achievements across continents and vastly different economic systems.

What are the Gaps in LatAm Financial Infrastructure:

For example, if Transfero’s infrastructure were used across the region, cross-border payments could become significantly cheaper, faster, and more accessible. By leveraging stablecoins like BRZ and USDT, transactions could be settled in seconds, 24/7, without relying on expensive correspondent banks or the traditional SWIFT network. 

Compared to traditional methods, which often take 1–5 days and incur fees of 3–6% or more, Transfero’s blockchain-based rails can reduce costs and enable real-time settlement. Moreover, users wouldn’t need to go through multiple intermediaries or currency conversions, making it ideal for businesses, freelancers, and even everyday remittances.

The company launched the BRZ stablecoin, which is fully backed by Brazilian fiat currency (Brazilian real – R$‎) and follows local rules. This builds trust with both users and regulators. Moreover, in Q2 2025, Transfero announced a partnership with Circle, to integrate the Circle Payments Network (CPN). This helps to connect Latin American markets with the rest of the world in a safe and compliant way. 

Instead of waiting for one set of rules across the whole region, Transfero focuses on working with local partners in each country who are already licensed and compliant. The system lets people make payments locally, convert to stablecoins, and send money across borders without using SWIFT or paying high fees. What’s needed going forward is more cooperation between governments and companies to create shared standards, even if full regional regulation is still far away. Transfero’s can deliver real solutions for cross-border innovation by building the right partnerships and respecting local laws.

These high costs disproportionately impact especially the small businesses and migrant workers, who rely heavily on efficient money transfer services.  -> And this is exactly where Transfero’s solution comes in. Transfero’s own API enables partners to seamlessly bridge the fiat and crypto worlds. 

The client initiates a payment with a local provider in their country, the funds are converted into a stablecoin, sent to Transfero, and the company handle the payout in Brazil—or vice versa. This process eliminates SWIFT fees and avoids the high currency exchange spreads typically charged by banks.

All in all, the region’s reliance on foreign payment networks creates vulnerabilities and inefficiencies. Major international transfers depend on foreign banking infrastructure, subjecting Latin American businesses to foreign regulations, sanctions risks, and currency conversion costs. This dependency becomes particularly problematic during geopolitical tensions or when engaging with sanctioned entities.

That said, Transfero emerges as a uniquely positioned solution to Latin America’s financial fragmentation challenges. As a regulated blockchain-based financial services company, Transfero provides the critical infrastructure necessary for seamless cross-border payments and crypto services across Latin America, with expanding reach into Europe and soon to other regions of Global Digital Majority. 

Transfero’s approach addresses the core problems identified mentioned above through practical, compliance-first solutions that work within existing regulatory frameworks while pushing the boundaries of financial innovation.

Comprehensive Solutions Portfolio:

Regional stablecoins represent an offering for regional trades. By creating stablecoins pegged to individual Latin American fiat currencies—e.g. Brazil real or Argentinian peso —Transfero enables businesses to engage in cross-border trade without exposure to volatile cryptocurrencies or expensive USD conversions. These stablecoins maintain the stability of traditional currencies while providing the speed and cost efficiency of blockchain technology.

Compliance-first cross-border payment rails ensure that Transfero’s services meet regulatory requirements across multiple jurisdictions while providing businesses with reliable, auditable transaction records. This approach addresses regulatory concerns that have historically limited fintech innovation in the region.

Direct fiat-to-fiat transfer capabilities eliminate the need for intermediate currencies in regional trade. Life will be much easier if for example Colombian businesses that could send pesos directly to a Brazilian supplier’s real account without converting through US dollars, reducing costs and settlement times while supporting local currency ecosystems.

Transfero’s existing infrastructure provides a foundation for broader regional integration initiatives. Rather than requiring each country to develop independent blockchain payment systems, Latin American nations could leverage Transfero’s established network to accelerate regional financial integration.

The current global financial transition creates an unprecedented opportunity window for Latin American integration. BRICS continues advancing rapidly toward reduced dollar dependency and enhanced regional cooperation, while traditional Western financial systems face increasing challenges from sanctions, inflation, and geopolitical tensions.

Coordinated Action Recommendations:

Governments should prioritize regulatory harmonization and cross-border financial innovation. This includes creating regulatory sandboxes for fintech experimentation, negotiating bilateral agreements for digital payment interoperability, and supporting public-private partnerships that can accelerate financial integration.

Fintech companies need to collaborate in building regional infrastructure. Transfero’s success demonstrates the viability of compliance-first blockchain solutions, but regional integration requires multiple companies working toward compatible standards and shared objectives.

Trade organizations should advocate for reduced cross-border payment friction and support businesses in adopting new financial technologies. Industry associations can facilitate knowledge sharing and best practice development across borders.

Leveraging Transfero’s Ecosystem:

Transfero’s existing infrastructure provides a practical starting point for broader regional integration efforts. Rather than each country developing independent solutions, collaborative expansion of Transfero’s platform could accelerate regional financial integration while maintaining compliance and regulatory standards.

The company’s experience in navigating complex Latin American regulatory environments, combined with its technical expertise in blockchain-based financial services, positions it as a natural partner for governments and businesses seeking to reduce financial fragmentation.

Latin America stands at a critical juncture in global financial evolution. The region possesses the talent, market demand, and natural advantages necessary for successful financial integration, yet lacks the coordination to capitalize on these strengths. While BRICS demonstrates that regional financial cooperation is both possible and powerful, Latin America’s continued fragmentation represents a strategic failure that becomes more costly with each passing year.

Transfero offers a proven foundation upon which broader regional integration can build. The company’s compliance-first approach, local stablecoin innovation, and cross-border payment expertise provide practical solutions to the region’s most pressing financial challenges.

The window for action remains open, but it will not remain so indefinitely. As BRICS continues advancing toward reduced dollar dependency and enhanced regional cooperation, Latin America must choose between continued fragmentation and coordinated integration. The tools, technology, and market demand exist—what’s missing is the political will and private sector coordination to make regional financial integration a reality.

The choice facing Latin America is clear: seize this moment to build integrated financial systems that serve regional interests, or remain dependent on external financial infrastructure that prioritizes foreign rather than Latin American economic development. With Transfero’s existing ecosystem as a foundation and the urgent need for alternatives to traditional banking, the region has never been better positioned to achieve financial sovereignty through cooperation.