BRICS nations have returned to the global financial spotlight with new proposals for a shared blockchain-based payments system and a possible digital trade currency designed to reduce reliance on the US dollar. While often described informally as a “BRICS crypto,” the initiative is not a public cryptocurrency and not a retail coin.
Instead, the project centres on two practical goals: creating a shared payments infrastructure and exploring a digital unit for settling trade between member states.
The proposal gained momentum throughout 2024–2025 as BRICS members expanded to include Saudi Arabia, the UAE, Egypt, Iran and Ethiopia—countries that collectively control significant energy, commodity and logistics capacity.
As trade between them deepens, calls to modernise settlement systems have intensified, particularly among countries facing high dollar-transaction costs or exposure to US sanctions.
Despite global speculation, no BRICS currency currently exists, and member states have not signed an agreement launching one. What is real, however, is a coordinated push toward a multi-currency, blockchain-supported settlement platform, often referred to as BRICS Pay, along with ongoing discussions about a digital “trade unit” anchored by either a currency basket or commodities such as gold.
What BRICS Is Actually Proposing
In recent statements and reports from BRICS economic forums, member states have outlined three core ideas:
1. A Blockchain-Based Cross-Border Payment System
This would allow BRICS countries to settle transactions directly, without passing through US-dominated correspondent banking channels.
Furthermore, Russia’s Finance Ministry and Central Bank have repeatedly emphasised the importance of a decentralised, SWIFT-independent payment rail as sanctions pressure intensifies on Russian banks.
2. Central Bank Connectivity via CBDCs
Several BRICS members already run digital currency pilots:
- China: e-CNY (the world’s most advanced CBDC in live pilot phase)
- Russia: Digital Ruble under active testing
- India: Digital Rupee pilot through the RBI
- Brazil: Drex platform rollout continues
- South Africa: SARB’s Project Dunbar explored multi-CBDC cross-border settlement
These national digital currencies could link into a shared settlement network, enabling cheaper and faster cross-border payments across the bloc.
3. A Digital Unit of Account for Trade
Economists within the BRICS framework have floated a non-sovereign digital trade unit, not tied to any single country.
Variations under discussion include:
- A currency basket, similar to the IMF’s SDR
- A commodity-linked value reference, often discussed in the context of gold
- A blockchain ledger enabling transparent settlement between central banks
None of these options has been approved or launched, but the concept continues to be explored in working groups.
Why BRICS Wants This
The motivation is consistent across statements from Russia, China, and several BRICS+ members:
Reducing Exposure to the US Dollar
A majority of global trade is priced in USD, even between countries that have no geographic or political link to the United States. This dependence raises transaction costs and leaves nations vulnerable to dollar shortages and currency volatility.
Avoiding Sanctions Vulnerabilities
Russia and Iran in particular have been blocked from or restricted within the Western financial system. Creating an alternative payments channel allows sanctioned states to conduct legitimate trade without routing through the United States or Europe.
Cheaper, Faster Settlements
Cross-border payments are slow and expensive for developing economies. A direct, multilaterally governed system would lower fees and settlement times for BRICS-to-BRICS flows.
Strengthening South–South Trade
BRICS countries now represent a significant share of global energy, agricultural output, minerals, manufacturing and shipping. A shared financial infrastructure would support growing trade volumes without permanent reliance on Western intermediaries.
What Implementation Would Mean for Global Trade
If BRICS launches a functional digital settlement rail backed by CBDCs or a digital trade unit, research suggests several concrete outcomes—not hypotheticals, but likely operational effects.
1. Faster and Cheaper Intercontinental Payments
Cross-border settlement among BRICS members could become significantly more efficient.
For South Africa, this means:
- Cheaper imports from China, India and the Middle East
- More predictable settlement for mineral exports
- Reduced dependency on correspondent banks in Europe or the US
2. A Parallel System to SWIFT
The BRICS system would not replace SWIFT globally but would function as a secondary rail, especially for trade involving Russia, China, India, and the Gulf states.
3. Increased Use of Local Currencies
Even without a shared unit, BRICS members are already increasing settlement in:
- Yuan (China)
- Rupees (India)
- Dirhams (UAE)
- Rubles (Russia)
A shared payment rail would accelerate this trend.
4. Regulatory Challenges
However, Western financial regulators have raised concerns about:
- Anti-money-laundering compliance
- Potential sanctions circumvention
- Fragmentation of global financial standards
These issues mean any BRICS system would face scrutiny and careful review from global financial bodies.
Will This Weaken the US Dollar?
Current academic and financial research agrees on several points:
Short-Term Impact: Minimal
The dollar remains dominant because:
- It supports the world’s largest, most liquid bond market
- Global contracts—especially commodities—are priced in USD
- It is trusted by investors, central banks and corporations
A BRICS settlement system would not immediately threaten these structural advantages.
Medium-Term Impact: Gradual Erosion at the Edges
Where dollar usage may decline:
- Bilateral trade between BRICS members
- Energy trade between China and Middle Eastern BRICS+ members
- Russian trade already shifting out of USD due to sanctions
This is not collapse—it’s incremental diversification.
Long-Term Impact: Dependent on Adoption
A BRICS trade unit could gain influence if:
- It becomes widely adopted across Africa, the Middle East and Asia
- It integrates seamlessly with national CBDCs
- BRICS economies deepen supply-chain interdependence
None of these conditions currently exist at scale.
Has the United States Responded?
The United States has responded on both political and institutional fronts.
Politically, former President Donald Trump has warned that BRICS-led de-dollarisation efforts could result in 100%-plus tariffs on participating countries and potential trade restrictions for states supporting alternatives to the dollar—remarks that signal geopolitical concern rather than economic alarm.
From an institutional and market perspective, major US financial bodies and researchers maintain that the dollar remains structurally secure, emphasising that BRICS proposals are technically complex, politically difficult to implement, and pose no immediate threat to the dollar’s status as the leading global reserve currency.
Where Does South Africa Fit Into This?
South Africa stands to benefit in several practical ways. Lower transaction costs are a major advantage, with businesses trading with China, India and the Gulf potentially saving significantly on payment infrastructure fees.
Export-focused sectors such as mining, agriculture and manufacturing would likewise gain from faster, more predictable settlements, with transactions processed on a same-day or near-instant basis. South Africa’s neutral geopolitical position—free from sanctions—further enables it to act as a bridge between Western financial systems and emerging BRICS mechanisms.
At the same time, the transition introduces regulatory complexity. South African banks will need to operate across two major international settlement systems, integrate with multiple CBDCs and navigate differing compliance frameworks. The SARB’s involvement in Project Dunbar, along with its ongoing CBDC research, indicates that the country is already preparing for this dual-system reality.
It is important to note that BRICS is not creating a cryptocurrency in the retail sense. What is being proposed—openly and with growing coordination—is a digital, blockchain-supported financial architecture intended to strengthen intra-bloc trade and reduce collective reliance on the US dollar. If implemented, it would establish an alternative payment rail that supports intercontinental commerce, particularly South–South trade.
However, the dollar’s global dominance remains intact, and the US response—both political and analytical—signals strategic caution rather than crisis.
For South Africa, the initiative presents meaningful financial opportunities alongside new regulatory demands, marking the early stages of a gradual global shift toward a more multipolar currency landscape.
However, with relations between the United States and the South African government already strained, any abrupt or poorly managed realignment could introduce further complications—consequences that would ultimately be felt by ordinary South Africans.
What are your thoughts on this? Be sure to let us know below.
Do not forget to read, BRICS plans gold-backed system to challenge US dollar dominance, if you missed it.
FAQs: BRICS’ Proposed Gold-Backed Digital Currency
No. BRICS has not launched a new currency. What exists are proposals and working-group discussions exploring a digital trade unit or blockchain-based settlement system that could be partly linked to commodities such as gold. No official currency has been approved.
Several BRICS members want to reduce reliance on the US dollar for international trade, cut transaction costs, and develop a settlement system less vulnerable to sanctions. A commodity-linked digital unit is being explored as one potential tool for achieving this.
No. The proposals discussed so far involve a wholesale payment or settlement mechanism used between central banks or large institutions. It is not a replacement for domestic currencies and not intended for everyday consumer use.
The discussions focus on using blockchain-based payment rails and potentially connecting national central bank digital currencies (CBDCs) to enable faster, cheaper cross-border transactions. The system is still conceptual and not yet implemented.
Research suggests any impact would be gradual and limited in the near term. The dollar remains dominant due to deep financial markets, global trust, and widespread use in trade. A BRICS system may reduce dollar use for BRICS-to-BRICS trade, but not globally.
Politically, the US has expressed concern, with figures like former President Donald Trump warning of tariffs or trade consequences if countries participate in de-dollarisation efforts. Financial institutions, however, note that the dollar remains structurally secure.
Possible benefits include lower transaction costs, faster export settlements, and smoother trade with China, India and the Middle East. South Africa’s neutral geopolitical position also allows it to operate in both Western and BRICS-aligned financial systems.
The major challenge is regulatory complexity. Banks would need to navigate two international settlement systems, integrate with multiple CBDCs, and comply with differing standards. SARB’s CBDC research indicates preparation for this future.
No. The proposed BRICS mechanisms are designed for international settlement, not domestic monetary policy. National currencies, including the rand, would continue to serve their current role within each country.
There is no confirmed launch date. Discussions are active, particularly since BRICS expanded in 2024–2025, but the project requires complex coordination, regulatory frameworks, and technological infrastructure. Implementation—if approved—would likely be gradual.
