The BRICS Currency plan faces setbacks as internal rifts, U.S. tariffs, and technical barriers push the 2026 target beyond 2030.
The ambitious BRICS Currency plan, once hailed as a symbol of economic independence from the U.S. dollar, now faces mounting obstacles. Internal divisions among member nations, U.S. trade pressure, and unresolved technical challenges have made it increasingly unlikely that the BRICS Currency will materialize by the proposed 2026 timeline. Experts now predict that the project may not take shape before 2030.
BRICS Currency: A Faltering Dream of Financial Unity
The BRICS Currency was envisioned as a common monetary unit to strengthen the bloc’s influence in global trade and reduce dependence on the dollar. However, at the July 2025 Rio de Janeiro summit, deep-seated disagreements surfaced. India, in particular, voiced skepticism.
External Affairs Minister S. Jaishankar reaffirmed that the U.S. dollar remains “a source of global economic stability” and cautioned against dismantling it prematurely. India fears that a BRICS Currency could amplify China’s dominance in global finance, given Beijing’s vast manufacturing base and foreign exchange reserves.
Adding to the strain, Chinese President Xi Jinping and Russian President Vladimir Putin skipped the summit, reflecting widening internal rifts. Analysts argue that the divergent economic cycles, inflation rates, and regulatory systems among the BRICS nations—Brazil, Russia, India, China, and South Africa—make the formation of a BRICS Currency exceedingly complex.
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Internal and Technical Barriers
A recent report by the International Financial Studies Association highlights that harmonizing monetary policies, banking controls, and exchange systems across the five economies could take decades. The lack of a unified central authority further undermines the credibility of the proposed BRICS Currency.
Economist Steve Moore dismissed the plan outright, saying, “Who’s going to trust the ruble or the Brazilian currency?” Without a single central bank or regulatory system, he added, the BRICS Currency is likely to remain more of a political statement than a financial reality.
Trump’s Trade Pressure Deepens the BRICS Currency Crisis
The situation worsened after U.S. President Donald Trump imposed 100% tariffs on Chinese imports in October 2025, labeling the BRICS Currency initiative as an “attack on the U.S. dollar.” Washington warned that any nation participating in the bloc’s de-dollarization push could face additional 10% tariffs.
This has put India and Brazil, both major exporters to the U.S., in a tough spot. Their export sectors—especially steel, pharmaceuticals, and agriculture—are already facing tariff rates as high as 50%. Moscow and Beijing, meanwhile, have accused the U.S. of economic coercion and warned that such measures could accelerate the global shift away from dollar dominance.
BRICS Pay: The Digital Bridge Toward the BRICS Currency
Amid delays in forming a common currency, the bloc has pivoted toward a more practical initiative: BRICS Pay, a blockchain-based payment platform launched in August 2025. The system, powered by the Decentralized Cross-border Messaging System (DCMS), aims to facilitate real-time local-currency trade among member nations.
However, experts note that BRICS Pay is still experimental and faces interoperability issues with Central Bank Digital Currencies (CBDCs). Analysts believe it may take until 2030 for the platform to reach full-scale functionality, with challenges remaining in foreign exchange clearing, compliance, and cybersecurity.
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The Future of BRICS Currency and De-Dollarization
The original BRICS Currency vision—to establish a shared unit rivaling the U.S. dollar—has gradually transformed into a broader digital payment strategy. Rather than pushing for a single monetary unit, BRICS nations are now focusing on increasing trade settlements in their local currencies.
This pragmatic shift signals a new phase in the bloc’s economic cooperation. Experts predict that over the next decade, BRICS will focus more on strengthening financial infrastructure and regional trade systems rather than launching a single BRICS Currency.
Conclusion: BRICS Currency – A Vision Delayed, Not Dead
As the 2026 BRICS Summit in New Delhi approaches, the bloc’s leaders appear to be recalibrating expectations. The dream of a unified BRICS Currency may have receded into the diplomatic distance, but its spirit lives on in initiatives like BRICS Pay and localized trade settlements.
While the creation of a true BRICS Currency remains uncertain, the bloc’s gradual progress toward financial autonomy marks a significant step in the global move toward a multipolar economic order.