Why BRICS Might Replace the U.S. Dollar — Slowly, Quietly, and Strategically

For more than 80 years, the U.S. dollar has been the king of global money. It has been the currency used to buy oil, settle international trade, store national savings, and stabilize global markets. The world’s biggest companies depend on it. Most governments save in it. Even when there is a crisis anywhere, people rush to the dollar for safety.

But a quiet transformation is now happening.

A growing group of countries — Brazil, Russia, India, China, South Africa, and several new members like Saudi Arabia, UAE, Egypt, Ethiopia, and Iran — known as BRICS, is working to reduce its dependence on the U.S. dollar.

This does not mean BRICS is trying to create one single new “BRICS currency” tomorrow. In fact, this is not even a formal plan right now. But what is happening is just as important: BRICS is slowly building a new financial world, one that could weaken the power of the U.S. dollar over time.

This blog explains why BRICS wants to move away from the dollar, how they are building new systems, what challenges they face, and what this means for the future of money.

We’ll use very easy English, clear examples, and real facts from the current global system.

THE BIG SHIFT: BRICS WANTS A MULTIPOLAR FINANCIAL WORLD

Before we look at the details, let’s understand the big picture.

For decades, the global financial world has been unipolar — meaning one country holds most of the power: the United States. Its currency rules everything from oil trading to international banking.

BRICS wants a multipolar world, meaning many countries share influence, not just one.

This does not mean destroying the dollar.
It means reducing its dominance so that countries have more independence and fewer risks.

To achieve this, BRICS is building its own financial tools.

BRICS INITIATIVES TO REDUCE DEPENDENCE ON THE DOLLAR

Here is an easy explanation of what BRICS is doing:

1. Local Currency Trade

This means countries trade with each other using their own local money — not the dollar.

This has already started:

• Over 90% of Russia–China trade is now in rubles and yuan.

• Around 65% of all BRICS trade now uses local currencies.

This is a huge shift. Twenty years ago, almost everything was in dollars.

2. BRICS Cross-Border Payments Initiative (BCBPI)

This project aims to create a new payment system that helps countries send money to each other without using Western-controlled networks.

A big part of this plan is improving how banks communicate and how payments move across borders.

A major technical report about this initiative was presented in 2025, showing real progress.

3. New Development Bank (NDB)

This is the official BRICS bank.
Its goal is to finance projects using the borrower’s local currency, not dollars.

Why is this important?

Because borrowing in dollars creates a cycle of debt and dependence.
Borrowing in local currency gives countries more control and less risk.

4. BRICS Pay

This is a multi-currency digital payment platform for ordinary businesses and consumers.

Think of it as a BRICS version of PayPal — but without touching the dollar.

Pilot tests for consumer payments succeeded in 2024, and business-level payments are now being developed.

WHY BRICS WANTS TO MOVE AWAY FROM THE DOLLAR

There are two powerful forces behind de-dollarization:

1. GEOPOLITICAL MOTIVATIONS: THE SANCTIONS PROBLEM

Many BRICS countries — especially Russia, China, Iran — believe the U.S. uses the dollar as a weapon.

Here’s how:

• The U.S. can block countries from using SWIFT, the messaging system banks use to move money internationally.

• The U.S. can freeze foreign reserves, meaning a country’s national savings stored in dollars can be seized.

• The U.S. can punish companies or banks that trade with certain countries.

This became clear when:

• Russia’s $300+ billion in foreign reserves were frozen after the Ukraine conflict.

• Iran was removed from SWIFT in 2012.

• China fears similar actions in the future due to rising tensions with the U.S.

In a dollar world, one country (the U.S.) has enormous financial power over others.
BRICS wants to reduce this risk.

2. ECONOMIC MOTIVATIONS: A SYSTEM SEEN AS UNFAIR

For decades, economists have called the dollar’s dominance an “exorbitant privilege” for the United States.

Why?

Because the world must hold dollars for trade, the U.S. can:

• borrow cheaply

• run large deficits

• export inflation

• influence global markets

• control sanctions pressure

Meanwhile, other countries must play by rules they did not create.

BRICS nations — especially China and India — believe a fairer system is possible if the world uses multiple currencies, not just one.

Another concern is U.S. public debt, which now exceeds $34 trillion.
Some BRICS nations worry that dollar stability may weaken in the long term.

HOW BRICS IS BUILDING A MULTIPOLAR SYSTEM

Beyond meetings and speeches, BRICS is creating real financial infrastructure.

Let’s explore the major tools.

“BRICS Bridge” — The New Payment Backbone

The BRICS Bridge is a proposed international payment system that uses:

• digital financial assets

• issued by central banks

• pegged to national currencies

This means countries can trade digitally without relying on SWIFT or U.S.-dominated banking networks.

It is designed to be:

• cheaper

• faster

• independent

• secure

• multipolar

This could become the most important financial tool outside the Western system.

China’s CIPS: A Real SWIFT Alternative

China has already built a competitor to SWIFT:
CIPS (Cross-Border Interbank Payment System).

As of early 2025:

• 1,467 indirect participants

• 119 countries use CIPS one way or another

This is a massive network.

It does not replace SWIFT yet, but it gives the world an alternate path — especially for yuan-based transactions.

This aligns perfectly with BRICS goals.

BRICS’ Growing Economic Power

Perhaps the biggest reason BRICS can challenge the dollar is economic weight.

In 2024, after expansion, BRICS’ GDP (measured by PPP) became:

• 40.2% of global GDP

• vs 28.8% for the G7

This means BRICS is now:

✔ bigger
✔ younger
✔ faster-growing
✔ richer in natural resources
✔ more industrial

Economic power always leads to financial power.
It is only a matter of time.

WHY REPLACING THE DOLLAR IS STILL VERY HARD

Even though BRICS is making progress, there are many major obstacles.

We must be realistic.
The dollar is not disappearing tomorrow.

Here’s why.

1. BRICS IS NOT A UNIFIED FAMILY

It is a diverse group with different priorities.

India strongly opposes a common BRICS currency.

India’s Commerce Minister said:

“Imagine us having a currency shared with China.
We have no plans. It is impossible.”

India fears:

• China’s dominance

• losing monetary control

• provoking U.S. retaliation

South Africa says de-dollarization isn’t practical.

It worries that attempting a dollar confrontation will cause economic retaliation or market instability.

Even Vladimir Putin signaled caution:

“We have not sought to abandon the dollar and we are not seeking to do so.”

Russia wants alternatives — not open conflict.

2. THE DOLLAR’S STRUCTURAL DOMINANCE

The dollar still dominates:

• 59% of global foreign reserves

• 88% of global forex transactions

• most global trade

• global commodities like oil and gas

• global debt markets

• global banking systems

No BRICS currency is even close.
The Chinese yuan is only 2.8% of global reserves.

But why is the dollar so strong?

Because:

• U.S. markets are deep and liquid

• The treasury bond market is the safest investment

• U.S. laws protect investors

• The Federal Reserve is stable

• Global financial institutions are built around the dollar

• Countries trust U.S. property rights more than China’s or Russia’s

Trust is the biggest factor in global finance — and trust cannot be built overnight.

3. BRICS COUNTRIES STILL USE THE DOLLAR THEMSELVES

This is the most ironic part.

Many BRICS nations still depend on the dollar:

• China holds over $800 billion in U.S. Treasury bonds

• Gulf states price oil in dollars

• India trades heavily with the U.S.

• Brazil values dollar-denominated stability

• Russia still settles some commodities in dollars through intermediaries

Even those who challenge the dollar rely on it.

This creates a strange contradiction:
BRICS wants to limit the dollar’s power, but also depends on it for savings, trade, and refinancing.

WHAT DOES THIS MEAN FOR THE FUTURE OF THE DOLLAR?

We can now answer the central question.

Will BRICS replace the U.S. dollar?

No — not soon, and not with one single new currency.

BUT…

Will BRICS weaken the dollar’s dominance and accelerate a multipolar world?

Yes — and it is already happening.

Dollar dominance is slowly shrinking.
Not collapsing, not disappearing — shrinking.

Think of it like this:

• Instead of one global currency (the dollar),

• We get several strong regional currencies — yuan, rupee, real, rouble, and others.

This is similar to what happened with:

• the British pound (before 1945)

• the French franc (before WWI)

• the Spanish currency during colonial times

Power shifts — slowly but surely.

WHAT THE FUTURE LOOKS LIKE: A “MULTICURRENCY” WORLD

Here’s a simple picture of what the next 10–20 years may look like:

1. The dollar remains powerful — but less dominant.

Its share of global reserves may fall to 40–45%.

2. The yuan becomes the second global currency.

Driven by:

• China’s trade weight

• CIPS

• the Belt & Road Initiative

3. BRICS currencies grow in regional trade.

Especially:

• ruble–yuan

• rupee–dirham

• yuan–real

• rand–yuan

4. Digital currencies become the backbone of payments.

Including:

• CBDCs

• BRICS Bridge assets

• blockchain-based systems

5. Financial power becomes shared, not centralized.

This is the core of the multipolar future.

WHY THIS SHIFT MATTERS TO EVERYONE

This is not just a story about big governments and banks.
It affects everyday people.

1. It may make global trade cheaper.

Local currencies reduce conversion costs.

2. It gives countries more independence.

They don’t risk their savings being frozen.

3. It may reduce the global power of U.S. sanctions.

This will dramatically change geopolitics.

4. It could cause shifts in global markets.

Currencies may fluctuate more as the world moves away from one dominant system.

5. It will change how companies trade globally.

More currencies will be used in exports and imports.

CONCLUSION — BRICS WILL NOT REPLACE THE DOLLAR, BUT THEY WILL CHANGE THE WORLD

The future of money is not one giant BRICS currency replacing the U.S. dollar.
That idea is mostly media hype and political imagination.

But the real story is much deeper, more realistic, and more important:

BRICS is building a new financial world where no single nation controls everything.

• Local currencies are rising.

• New payment systems are emerging.

• Digital assets are being tested.

• China’s financial networks are expanding.

• The New Development Bank is growing.

• Sanctions pressure is motivating alternatives.

Piece by piece, BRICS is building a world where the dollar is:

Still strong.
Still important.
Still dominant — but not alone.

The next global era will not be dollar-only.
It will be dollar–yuan–rupee–real–dirham–digital.

A multipolar money world is coming — and BRICS is the architect.