BRICS nations are accelerating moves to reduce reliance on the U.S. dollar by linking central bank digital currencies and building alternative payment systems, creating pressure on global finance as of 2025 (Ed. note: Dollar reserves fell below 40% for the first time in about two decades). This shift aims to lower dollar dependence and protect countries from sanction risks.
Donald Trump warned that BRICS seeks to undermine the dollar and threatened 100% tariffs on countries joining de-dollarization efforts. “BRICS was set up to hurt us, BRICS was set up to degenerate our dollar and take our dollar . . . off as the standard.”
The Reserve Bank of India has proposed linking central bank digital currencies at the 2026 BRICS summit. T. Rabi Sankar stated: “CBDCs do not pose many of the risks associated with stablecoins.”
S. Jaishankar said India has no policy to replace the dollar and called it a source of global stability. Meanwhile, Russia and China now settle about 90% of bilateral trade in local currencies, and Vladimir Putin explained: “We are not refusing, not fighting the dollar, but if they don’t let us work with it, what can we do?”
BRICS members are testing BRICS Pay and the blockchain-based Unit, and the New Development Bank aims for roughly 30% of lending in local currency by 2026. Banks are increasing gold holdings over dollar deposits amid fears of financial weaponization, and analysts view the trend as a major inflection point.
