The BRICS group is considering launching a unified digital currency against the dominance of the dollar

The BRICS countries have expressed their interest in the possibility of developing a digital currency backed by gold as part of efforts to reduce dependence on the US dollar in international trade, according to Alexey Jordanov, an expert in the field, on the Bitcoin News platform.

Political transformations in the BRICS countries

Jordanov said geopolitical shifts had contributed to the making of the scene, including Russia’s exclusion from the SWIFT payment network and to the bloc’s exploration of alternative settlement systems.
If the proposed single currency goes ahead, it could be linked to gold and a basket of BRICS currencies while providing ledger technology for transparency and security.
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US President-elect Donald Trump has stated that he may impose 100% tariffs on BRICS countries if they introduce a currency that challenges the dollar’s dominance.

BRICS countries compared to the world

Together, the BRICS countries represent 40% of the world’s population and generate more than 30% of the world’s GDP, slightly more than the G7. Despite this economic strength, the dollar still dominates global trade, with the BRICS currencies playing a smaller role.
Trade between BRICS countries, which has increased by 56% since 2017, accounted for 37% of total transactions within the bloc in 2022.
Jordanov suggests that if the proposal for a gold-backed currency was taken up, it could reduce transaction fees and exchange rate risks.

Gold reserves in BRICS countries

By tokenizing gold reserves, each digital unit will be backed by tangible assets stored in secure vaults with regular audits to ensure accountability.
Smart contracts can dynamically adjust currency weights to reflect trade patterns and economic conditions.
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“This would enable real-time settlements, reduce delays and enhance trust among participants,” he noted.
Such a system could even attract countries outside the bloc seeking alternatives to dollar-dominated networks, which could increase the BRICS share in global trade beyond the current 18%.”

An alternative to dollar hegemony

Jordanov pointed out that the BRICS countries collectively possess 5,700 tons of gold, which represents 16% of global reserves, compared to 17,500 tons for the Group of Seven, or 49%.
Despite the threats, the BRICS, with its strategic gold reserves and economic influence, are likely to continue to come up with ideas to reshape the global finance landscape and offer an alternative to the dollar-based system.