BRICS Exploring Blockchain for Payment System to Reduce Dollar Dependency 



The BRICS alliance is actively exploring blockchain technology for a new payment system aimed at reducing reliance on the US dollar. This move is part of a broader strategy to enhance economic independence amid ongoing geopolitical tensions.

Shift Away from the US Dollar

The BRICS nations—Brazil, Russia, India, China, and South Africa—have been gradually working to move away from dollar-dominated trade systems. With the return of Donald Trump to the White House, the US has escalated economic pressures, including proposed 150% tariffs on BRICS nations. This has led to internal divisions within the bloc, but the push for de-dollarization continues.

Blockchain-Based Payment System Proposal

Brazil, which holds the BRICS chairmanship for 2025, has introduced a proposal for a blockchain-powered payment system. The initiative aims to streamline cross-border transactions, lower costs, and promote the use of local currencies in international trade. While BRICS leaders emphasize that this system will not directly challenge the US dollar’s global dominance, it will provide an alternative mechanism for financial settlements.

US Response and Global Implications

The US has closely monitored BRICS' de-dollarization efforts, with Trump reaffirming the importance of the dollar as a global reserve currency. However, the adoption of blockchain in BRICS trade settlements could mark a significant shift in global financial dynamics.

With the BRICS 2025 summit approaching, this blockchain initiative is expected to be a key discussion point as the alliance seeks greater economic autonomy.