Headline: Russia doubles down on BRICS de-dollarization — national-currency settlements and a new payments rail move to the front
Russia has officially confirmed a stepped-up BRICS effort to reduce reliance on the US dollar, moving from rhetoric to concrete steps: expanded national-currency settlements and the build-out of alternative cross-border payment infrastructure. Moscow presents the push as a defensive response to Western sanctions and the “weaponization” of dollar-based financial rails.
What officials are saying
- On December 25, Russian Foreign Ministry spokesperson Maria Zakharova said BRICS countries are actively creating the conditions for mutual trade to be settled in their own currencies. She acknowledged the transition will take time but stressed member states are committed to practical results.
- Russia’s Finance Minister Anton Siluanov told a February 2024 meeting in São Paulo that the current system—rooted in Western financial infrastructure and reserve currencies—is “severely flawed” and increasingly used as a tool of political and economic pressure, arguing this drives the need to reform the international monetary system.
- Zakharova repeatedly framed the shift as a reaction to “illegitimate and politicized” Western restrictions, while also saying BRICS “does not oppose the dollar.” The message: this is a protective pivot, not an explicit attack on the US currency.
What’s already changing
- President Vladimir Putin told the 2024 BRICS Summit that roughly 90% of Russia’s settlements with BRICS and friendly countries are now conducted in BRICS national currencies or other non-dollar currencies — signaling a major move away from dollar-dominated transactions.
- Russian authorities say the BRICS Cross-Border Payment Initiative (BCBPI) will operate using BRICS national currencies rather than the US dollar, according to reports from Russia’s finance ministry and central bank. The initiative is presented as infrastructure to minimize member states’ exposure to secondary Western sanctions.
Why it matters
- Moscow and other BRICS members frame de-dollarization as both a shield for trade interests and a path to greater global financial stability, reducing dependency on Western-controlled payment rails.
- The plan emphasizes bilateral relationships and trade cooperation — Zakharova characterized the cooperation as longstanding, practical ties in energy and trade rather than geopolitical posturing.
Implementation challenges and outlook
- Officials admit the shift is complex: technical systems, interbank rails, liquidity arrangements and coordination between central banks must be built or adapted. Success hinges on how quickly and effectively BRICS members can harmonize their systems.
- The effort is gradual and incremental: member states are rolling out alternative payment channels while continuing to build the technical infrastructure needed for broader adoption.
Implications for crypto and broader markets
- For the crypto sector, wider adoption of non-dollar settlement rails and alternative cross-border payment infrastructure could create new on-ramps for tokenized assets, stablecoins, CBDC interoperability, and private-sector rails that bridge national systems — or at least increase demand for such solutions. It may also shift FX flows and settlement patterns in regions where BRICS influence is growing.
- More broadly, de-dollarization among BRICS could accelerate diversification away from dollar-denominated instruments and prompt more countries to explore parallel payment infrastructures that reduce exposure to sanctions.
Bottom line: Russia’s messaging and recent disclosures indicate BRICS is moving from discussion to execution on de-dollarization — a deliberate, technically challenging campaign framed as protecting trade and financial stability in the face of Western pressure. The outcome will depend on coordination, technical rollout, and how global markets and payment tech (including crypto and CBDCs) respond.
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