The U.S. dollar’s dominance, long supported by deep financial markets and the largest gold reserves, is facing mounting pressure from BRICS nations. With systems like BRICS Pay and growing gold reserves in China and Russia, a parallel financial infrastructure is quietly forming. While the U.S. may maintain its edge for another 5–10 years, the rise of gold-backed, blockchain-enabled settlements is signaling a shift toward a more multipolar payment system—one where dollar exclusivity is no longer the only option.
BRICS, Gold, and the Slow Erosion of Dollar Dominance
For nearly a century, the U.S. dollar has reigned as the world’s financial anchor—underpinned not just by economic power, but by its historical position as the global trade and reserve currency. This dominance was initially born from the Bretton Woods system and fortified post-WWII through the petrodollar system and vast gold reserves.
But that legacy is now being tested—and not by accident.
In October 2024, the BRICS bloc took a bold step by introducing BRICS Pay, a blockchain-based cross-border payment system designed to bypass the dollar entirely. With over 159 countries expressing interest, and early pilots in China, Russia, and India demonstrating up to 50% transaction cost savings, the writing on the wall is clear: the era of dollar exclusivity is coming to an end.
The Golden Anchor — Still Firm, but Cracking
One of the pillars that has long sustained U.S. dollar dominance is its relationship to gold. While the dollar is no longer directly backed by gold since 1971, the U.S. still holds the world’s largest gold reserve—over 8,100 metric tons. This, along with the depth of U.S. financial markets and the liquidity of the dollar, continues to give global investors confidence during periods of volatility.
But that psychological edge is fraying.
Russia and China have been steadily increasing their gold reserves, using them to settle bilateral trade and back their currency stability. As of 2025, China holds over 2,300 tons of gold, and Russia has surpassed 2,300 tons as well. These reserves now play a quiet but powerful role in facilitating non-dollar trade—including oil and commodities between BRICS members.
Even more significantly, BRICS discussions around using gold-backed settlement systems, particularly for high-value energy trade, are gaining traction. Some analysts argue that a gold-influenced system—combined with digital currencies and local settlement channels—could outflank the psychological dominance of the dollar, even if not fully replacing it.
A New Infrastructure Is Quietly Being Built
With initiatives like BRICS Pay, national platforms such as CIPS in China, SPFS in Russia, and UPI in India, and the proposed digital BRICS bridge wallet, a parallel financial infrastructure is no longer hypothetical—it’s functional.
CIPS alone handled over $14 trillion in transactions in 2023, spanning 119 countries.
China now settles over 90% of its oil purchases from Russia in yuan, sometimes directly convertible into gold via the Shanghai Gold Exchange.
BRICS Pay processes over 20,000 transactions per second, rivalling SWIFT’s speed, with almost negligible fees.
The more this system is adopted—not just by BRICS, but by African, Latin American, and Southeast Asian nations—the less leverage Washington holds through dollar dependence.
How Long Can the U.S. Delay This Shift?
Realistically, the U.S. can sustain financial dominance for the next 5–10 years—but only through proactive adaptation, not resistance.
The dollar’s strength still lies in its liquidity, centrality in global reserves (59% as of 2024), and the U.S.’s ability to impose sanctions through SWIFT. But every sanction accelerates the search for alternatives. The more countries watch the dollar being used as a geopolitical weapon, the more they build escape routes.
Gold offers BRICS a hedge. Technology gives them a channel. And global fatigue with dollar-centric rules gives them the political momentum.
The Shift Has Already Begun
While the U.S. still holds the world’s financial crown, the grip is loosening. Gold is no longer just a hedge—it’s becoming an anchor for a new system. With BRICS Pay gaining traction and gold-backed settlements increasingly feasible, the dollar’s monopoly on trust is no longer guaranteed. The question is not if a new payment order will emerge, but how soon—and how peacefully—it will coexist with the old.
For countries in the Global South and emerging markets, this isn’t just a financial development. It’s a path to sovereignty—one gold bar, one local transaction, and one blockchain at a time.
NASIR KAZEROUN
BRICS FEDERATION