How BRICS Could Cause a Structural Shock to the US Dollar System

Source: Brasil 247 | Original Published At: 2026-01-17 12:44:37 UTC

Key Points

• BRICS nations are developing alternative payment systems (Unidade, mBridge, BRICS Pay) to reduce reliance on the US dollar and SWIFT infrastructure.
• The New Development Bank (NDB) is positioned as a key node for BRICS financial connectivity but requires structural reforms to operate independently from the dollar.
• Sanctions against Russia accelerated global interest in gold reserves and bilateral payment agreements as alternatives to the petrodollar system.
• Proposals include blockchain-based tokens and a new reserve currency backed by a basket of BRICS currencies to facilitate international trade settlements.
• China's CIPS system and the concept of a Keynesian-style Bancor-inspired currency are discussed as potential frameworks for financial decoupling.