The idea of a unified BRICS currency—often called the “BRICS coin” or “Unit”—has gained momentum over the past two years, driven by a shared ambition among member nations to reduce reliance on the US dollar. Yet questions remain about how soon or even whether this vision can materialise.
At the 2024 BRICS Summit in Kazan, Russia, leaders discussed the feasibility of a new reserve currency, potentially backed by a combination of gold and a basket of member currencies. The proposed structure would consist of 40% gold reserves and 60% local currencies, aiming to provide a more stable and politically neutral alternative to the dollar.
While the concept is ambitious, internal divisions remain. Russia and China are the most vocal proponents, motivated in part by Western sanctions and a desire to assert financial sovereignty. India, however, has expressed reluctance, cautious of increasing dependence on the Chinese yuan. Brazil and South Africa have shown moderate interest, focusing more on enhancing trade in local currencies than on launching a common currency.
Rather than rushing toward a single currency, the BRICS bloc has prioritized building alternative financial infrastructure. The BRICS Pay system, a decentralized payment messaging platform, is designed to facilitate cross-border transactions in local currencies and reduce reliance on SWIFT. The platform uses blockchain-based Distributed Ledger Technology (DLT) and is being piloted to support interoperability between central bank digital currencies (CBDCs).
The geopolitical implications have not gone unnoticed. In late 2024, US President Donald Trump threatened 100% tariffs on BRICS nations if they pursued a new currency to rival the dollar. This hardline stance underscores Washington’s concern over potential de-dollarization: an ongoing trend worldwide—not only among BRIC members—though analysts argue that the dollar’s dominance remains secure in the near term.
While a BRICS coin is not imminent, the group’s efforts to create alternative payment systems and reduce dollar dependency are moving forward. The focus for now is on enhancing financial autonomy through digital infrastructure and local currency trade, rather than launching a unified currency. The coming years will reveal whether these initiatives can evolve into a cohesive monetary framework or remain a collection of parallel systems.
