Skip to content

The ECB Accuses the BRICS of ‘Fragmenting the System’

Piero Cipollone, the European Central Bank (ECB) official who announced that climate change is the cause of inflation, has doubled down with the allegation that the BRICS are “fragmenting” the global payment system.

In a post for the ECB blog, Cipollone (whose name in Italian means Big Onion) addressed the BRICS discussion for a new trade currency, ignoring the premise that it was the weaponization of the U.S. dollar and the euro that prompted that discussion. In other words, it was the United States and the European Union that started the “fragmentation” of the global payment system. Cipollone wrote: “Nowhere else are the risks of global monetary system fragmentation more visible than in international payments. At a time when we should be integrating payment systems to reduce their complexity and cost to users, some nations are deliberately creating separate platforms as alternatives to existing global infrastructures.

“For example, China, Iran and Russia have created their own cross-border payment messaging systems, while BRICS members have started to discuss a ‘bridge’ platform for linking digital payments and settlement. These developments could potentially disrupt the smooth flow of capital and reduce the efficiency of the global financial system.

“Given these shifts, there are compelling economic and political reasons for seeking to preserve the euro’s global currency status. This status brings tangible benefits to European citizens, such as low borrowing costs in international capital markets and protection from exchange-rate volatility. Moreover, in a fragmented geopolitical landscape, the euro’s international currency status provides strategic autonomy by shielding Europeans from external financial pressures.”

The question is: Since the EU is rejecting economic cooperation with the Global South, thus deciding to lose more and more international trade quotas, how does it intend to “preserve the euro’s global currency status”?