The BRICS UNIT won’t replace the dollar. And that’s despite the bloc’s aggressive push toward de-dollarization and alternative payment systems. Here’s the thing—the proposed BRICS UNIT currency faces overwhelming challenges right now, from political divisions among member nations to the sheer dominance of the US dollar in global trade.
Experts remain skeptical, as it turns out. At the time of writing, the BRICS payment system still can’t overcome these fundamental obstacles.
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BRICS UNIT Currency, De-dollarization, and US dollar Dominance
Political Divisions Undermine Currency Ambitions
Internal disagreements among BRICS members reveal deep fractures in the de-dollarization strategy even. India has explicitly clarified it is not interested in replacing the US dollar, but rather seeks “workarounds” to protect trade interests and reduce vulnerability to Western sanctions. Brazil, too, softened its stance on a common currency after facing political pressure from the United States, and this wavering commitment signals broader hesitation within the bloc.
India’s External Affairs Minister S. Jaishankar stated at an event in London in March 2025:
I don’t think there’s any policy on our part to replace the dollar. The dollar as the reserve currency is the source of global economic stability, and right now what we want in the world is more economic stability, not less.
US dollar Dominance Remains Unshakeable
The US dollar is currently used in an estimated 90% of international trade. And it continues to hold approximately 57.3% of global reserves as of early 2024.
Here’s the thing—this entrenchment is supported by the world’s largest and most developed financial markets. That’s an advantage the BRICS payment system (or any alternative arrangement) can’t easily replicate right now. The massive, liquid US economy provides a level of stability and trust that emerging payment infrastructures simply cannot match.
Any country aligning themselves with the anti-American policies of BRICS will be charged an additional 10% tariff. There will be no exceptions to this policy, said US President Donald Trump.
He later stated that the BRICS bloc was set up to “degenerate” the US dollar. In February 2025, Trump declared in a press briefing that “BRICS is dead,” claiming the bloc went silent following his “150%” tariff threat.
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Why the BRICS UNIT Won’t Replace the dollar
At the July 2025 BRICS Summit, leaders actually confirmed no joint currency would launch in the near term. The BRICS UNIT currency—launched as a pilot on October 31, 2025—is designed as a settlement instrument with 40% gold and also 60% BRICS currencies right now.
These incremental alternatives are creating change in specific corridors rather than replacing the dollar even. The BRICS UNIT won’t replace dollar dominance anytime soon, and the gap between ambition and execution remains substantial at the time of writing. Internal divisions along with external pressure ensure the BRICS UNIT won’t replace the dollar as the global reserve currency.