End of dollar? Iran war pushing BRICS and Global South towards de-dollarization

Source: Activist Post | Original Published At: 2026-04-05 13:00:00 UTC

Key Points

• BRICS Pay system designed for cross-border transactions outside dollar infrastructure could become operational within the year
• India's Reserve Bank proposed interlinking central bank digital currencies (CBDCs) across BRICS nations
• The initiatives aim to reduce transaction costs, minimize exchange risks, and weaken structural dependence on the dollar
• BRICS Pay combines digital platforms, local currency settlements, and potentially blockchain-backed clearing mechanisms
• Brazilian analysts emphasize BRICS Pay provides a viable alternative for international settlements rather than replacing the dollar overnight
• Several BRICS nations are already piloting or deploying CBDCs, with India's interoperability proposal potentially transforming isolated experiments into a cohesive network
• Geopolitical tensions and sanctions regimes are driving countries to seek alternatives to traditional dollar-based payment systems