BRICS Payment System: Is This the Beginning of the End for the Dollar’s Dominance? India-Russia Plan Could Hit the US and Europe Hard
For decades, the US dollar has been the undisputed king of global trade, finance, and international settlements. Whether it’s oil, gold, or high-tech goods, the greenback has ruled the payment pipelines of the world through mechanisms like SWIFT — the Society for Worldwide Interbank Financial Telecommunication. But now, a tectonic shift is underway. The BRICS bloc — comprising Brazil, Russia, India, China, and South Africa — is preparing to launch a blockchain-based payment system that bypasses the dollar entirely.
This move could not only challenge the financial monopoly of the United States but also fundamentally reshape the way the world conducts cross-border trade. And at the center of this geopolitical financial chessboard is the India-Russia strategic plan — a partnership that could deal a heavy blow to American and European economic dominance.
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The Dollar’s Global Grip – And Why BRICS Wants to Break It
The US dollar’s dominance in global trade is not just about currency; it’s about control. Since World War II, the dollar has been the world’s reserve currency, meaning most nations hold large amounts of it for trade and investment. The SWIFT network, dominated by US and European banks, ensures that nearly every significant international transaction is visible to, and can be influenced by, Western powers.
This system gives Washington immense leverage:
Sanctions Power – The US can freeze assets and cut countries off from the global banking network.
Trade Influence – Countries trading in dollars are often subject to US regulatory oversight.
Economic Weapon – The dollar’s dominance allows the US to run deficits without facing currency collapse.
For countries like Russia, China, and even India, this dependency poses strategic risks. One political disagreement with Washington could lead to economic isolation. Hence, the BRICS payment system is being designed to break this chain.
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The BRICS Blockchain Payment System – How It Works
Unlike SWIFT, which routes transactions through centralized banks, the proposed BRICS payment system will use blockchain technology. This has three big implications:
1. Decentralization – No single country can control or monitor all transactions.
2. Speed – Transactions can settle in seconds instead of days.
3. Cost Efficiency – Lower transaction fees compared to traditional banking.
The payments will be settled in local currencies or potentially in a new BRICS currency backed by a basket of member nations’ resources like gold, oil, and rare earth metals. This system could make trade between BRICS countries — and with partners in Africa, the Middle East, and Latin America — faster, cheaper, and independent of Western oversight.
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India-Russia: The Engine Behind the New Payment System
While China has the economic muscle and Russia has the political motivation, India’s role is emerging as equally critical. India is one of the fastest-growing major economies in the world and has already been increasing its use of rupee-ruble settlements in trade with Russia — especially after Western sanctions on Moscow over the Ukraine conflict.
Key India-Russia initiatives in this space include:
Rupee-Ruble Trade – Bypassing the dollar for oil, defense equipment, and fertilizer trade.
Cross-Border Payment Integration – Linking India’s UPI (Unified Payments Interface) with Russia’s SPFS (System for Transfer of Financial Messages).
Digital Currency Cooperation – Exploring the use of Central Bank Digital Currencies (CBDCs) for instant settlements.
If these bilateral mechanisms are merged into the broader BRICS blockchain framework, it could create a powerful alternative to SWIFT for half the world’s population.
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Why This Threatens the US and European Economies
If the BRICS payment system gains traction, it could erode the dollar’s global demand. Here’s why that matters:
Reduced Dollar Demand – Fewer countries will need to hold large reserves of USD, weakening the currency’s buying power.
Weakened Sanctions – Washington’s ability to punish nations through financial isolation will diminish.
Loss of Transaction Revenue – US and European banks could lose billions in annual fees from global trade settlements.
The euro could face similar challenges, as non-Western trade partners move toward BRICS settlements instead of euro-based transactions.
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The Geopolitical Ripple Effect
A functioning BRICS payment system would not just be an economic shift — it’s a geopolitical earthquake. It could:
Encourage Global South nations to diversify away from Western-led financial systems.
Strengthen political alliances among BRICS and allied nations.
Accelerate the decline of Western dominance in global governance structures.
Countries like Saudi Arabia, Iran, Egypt, and Argentina — all of which have shown interest in joining BRICS — could further expand the system’s reach. Imagine oil being priced and sold in a BRICS currency instead of the dollar; that would be a direct hit to the petrodollar system that has underpinned US financial power for decades.
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Challenges Ahead for BRICS
While the plan is bold, there are significant hurdles:
Trust Deficit – Can nations with competing interests (like India and China) truly cooperate long-term?
Technical Integration – Building a secure, scalable blockchain system for multiple nations is complex.
Global Pushback – The US and EU could retaliate with trade restrictions, sanctions, or financial countermeasures.
Liquidity Issues – A new currency or payment system needs deep liquidity to be practical for large-scale trade.
Nonetheless, the political will is stronger than ever. The Ukraine war, US-China tensions, and Western economic policies have pushed BRICS nations toward self-reliance in finance.
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The Future: Multipolar Finance
The creation of the BRICS payment system marks the beginning of a multipolar financial world. The dollar may not disappear overnight, but its absolute dominance is being chipped away. Over time, we could see a world where:
Major trade deals are settled in multiple currencies.
Blockchain-based settlement networks replace traditional banking intermediaries.
Financial power is distributed more evenly across continents.
For India and Russia, this is not just about avoiding Western sanctions — it’s about shaping the future of global trade. For the US and Europe, it’s a warning: adapt to the new reality, or risk losing the central role they have held for nearly a century.
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Conclusion
The BRICS blockchain payment system could be the most significant challenge to the US dollar since the end of the gold standard. By combining technological innovation with strategic cooperation, nations like India and Russia are building a path toward financial independence from Western control. If successful, this system could redefine the rules of global commerce, weaken the dollar’s grip, and usher in a truly multipolar economic era.
The coming years will determine whether this is a bold experiment or a historic transformation. But one thing is certain: the era of unquestioned dollar dominance is under serious threat.
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