- Russia’s SWIFT exclusion in 2022 spurred alternative system planning.
- BRICS members seek autonomy in international settlements.
- XRP’s speed and cost-efficiency seen as ideal for institutional use.
A new theory circulating among cryptocurrency and geopolitical analysts suggests that BRICS nations—Brazil, Russia, India, China, and South Africa—may be working behind the scenes to develop a gold-backed financial system using Ripple’s XRP Ledger.
This comes as the bloc continues efforts to reduce dependency on the US-led SWIFT network and the dollar-dominated global economy.
While unconfirmed by any government, the theory is gaining attention due to mounting evidence of BRICS cooperation on currency independence and blockchain innovation.
How the US maintains dominance in global finance
The global financial system is largely underpinned by three core levers of Western influence: the dominance of the US dollar, the SWIFT interbank messaging system, and the liquidity framework governed by Western central banks.
SWIFT enables international banking communication and has become a tool for enforcing sanctions. In 2022, Russia was ejected from SWIFT as part of coordinated Western sanctions, prompting the Kremlin to accelerate efforts to create alternative channels for cross-border payments.
By cutting off access to dollar reserves and freezing foreign-held assets, the US has demonstrated the strategic power of financial infrastructure.
Countries seen as politically adversarial or non-aligned are increasingly wary of this system, viewing it as a vulnerability rather than a neutral platform for trade.
Why BRICS wants out of the dollar system
Each member of BRICS has its own incentive to reduce exposure to the dollar. Russia’s exclusion from SWIFT and asset seizures have forced it to pursue financial independence. China is seeking to insulate its growing economy from Western financial pressure.
India and Brazil are looking to increase autonomy in international settlements, while South Africa has expressed interest in strengthening regional currencies.
This shared objective has sparked renewed calls within the bloc for a new system of value exchange—one that does not rely on Western mechanisms.
BRICS nations have already discussed launching a shared currency backed by commodities, and gold is viewed as the most viable asset for such backing due to its stability and global acceptance.
XRP Ledger as a bridge for gold-backed trade
According to the theory, Ripple’s XRP Ledger could serve as the digital bridge between local currencies and a gold-backed reserve system. XRP was designed for high-volume institutional transfers, with a transaction time of 3-5 seconds and low fees.
Unlike Bitcoin or Ethereum, XRP offers scalability and predictable costs—key for governments and central banks processing large transactions.
In this model, BRICS would not issue a new public token but instead use XRP’s existing infrastructure to settle trades. Gold could be held in national vaults or regional repositories, and XRP would be the mechanism through which value is transferred quickly and securely.
This would allow BRICS countries to bypass SWIFT and the dollar, while maintaining compliance and auditability through the XRP Ledger.
Strategic signals and unconfirmed moves
Although no official confirmation exists that BRICS is actively testing or adopting XRP, several developments have drawn speculation. Russia has already proposed a gold-pegged stablecoin for cross-border trade with friendly nations.
China continues to expand its digital yuan pilot. Ripple has also been expanding its presence in Asia, the Middle East, and Latin America—regions aligned with BRICS interests.
The theory remains speculative, but it is rooted in a broader trend of de-dollarisation and growing interest in blockchain-based infrastructure for sovereign financial systems.
Analysts argue that if BRICS succeeds in deploying a decentralised, asset-backed settlement model, it could reshape the future of international finance and challenge the existing power structures dominated by the West.
In response to the recent announcement by the BRICS nations, Bitcoin ETF issuer VanEck’s advisor, Gabor Gurbacs, has advocated for the adoption of Bitcoin (BTC) instead of rushing into Central Bank Digital Currencies (CBDCs). The BRICS announcement focused on the creation of an independent payment system based on digital currencies and blockchain technology. However, Gurbacs strongly disagreed with the idea.
VanEck Advisor Urges Countries To Adopt Bitcoin
The VanEck strategist took to the X platform to express his perspective on the CBDC initiative by BRICS. He encouraged Bitcoin adoption and stated, “Countries should just adopt Bitcoin instead of creating flavors of CBDCs.” BRICS, comprising Brazil, Russia, India, China, and South Africa, alongside Egypt, Ethiopia, Iran, and the United Arab Emirates, aims to bolster financial sovereignty and reduce reliance on the U.S. dollar.
Hence, the move underscores a global shift towards diversification in response to inflation and economic challenges. However, Gurbacs emphasized the pros of Bitcoin, highlighting its scarcity and decentralized nature as advantages over CBDCs. He asserted, “It takes commitment and humility to operate in a system where you can’t ad-hoc print money.” This reflects concerns over the potential for CBDCs to enable governments to exert undue influence over monetary policy.
The VanEck advisor further underscored the absence of an alternative to fiat systems. Gurbacs noted, “But that is exactly the alternative that’s missing from fiat systems.” This sentiment resonates with proponents of Bitcoin who advocate for a currency free from governmental control and manipulation.
Moreover, Gurbacs also highlighted the potential advantages of early adoption of Bitcoin, suggesting that nations stand to gain from embracing the crypto. He stated, “The first to adopt Bitcoin gain advantage.” This reflects the belief that Bitcoin offers opportunities for economic empowerment and independence.
Also Read: Louisiana Introduces Bill On Bitcoin Rights Amid BTC Price Rally To $68K
About BRICS’ CBDC Initiative
The BRICS announcement signals a concerted effort to explore alternative monetary systems, with a focus on digital technologies and blockchain. Kremlin aide Yury Ushakov underscored the importance of creating a payment system that is convenient, cost-effective, and free from political influence. He stated, “The main thing is to make sure it is convenient for governments, common people, and businesses.”
Furthermore, he spotlighted the commitment of nations to enhance the influence of BRICS in the global monetary and financial framework. The BRICS Contingent Reserve Arrangement (CRA) is commonly viewed as a rival to the International Monetary Fund (IMF).
In addition, recent disclosures unveiled collaboration among the Russian Finance Ministry, the Bank of Russia, and BRICS member states to develop various initiatives aimed at enhancing the international monetary and financial system. This encompasses the establishment of the BRICS Bridge multi-sided payment platform.
Also Read: Breaking: BRICS Plans Digital Currencies and Blockchain Based Payment System for De-Dollarization
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Morocco is now vying for a spot in the BRICS economic alliance, formally submitting a request for membership ahead of the much-anticipated summit next week. As the bloc continues expanding, Morocco hopes to join other contenders like Saudi Arabia, Indonesia, and Egypt to gain membership.
Read More: India Sidesteps Dollar, First Rupee Oil Trade Ahead of BRICS Summit
BRICS summit: expanding the economic bloc
BRICS, the economic coalition of Brazil, Russia, India, China, and South Africa, has grown in recent months. The forthcoming summit will bring together around 60 heads of state to set expansionary standards for possible new BRICS members. However, the final decision on which countries will join will likely be deferred.
JUST IN:
Morocco officially submits application to join BRICS.
— BRICS (@BRICSinfo) August 15, 2023
With its sustained interest in BRICS, Morocco is poised to join the growing list of nations seeking membership. However, it faces competition from other candidates, and the outcome of its request will depend on the criteria set forth at the upcoming summit.
Currency promotion, not de-dollarization
Contrary to speculation, the summit will not prioritize de-dollarization, despite BRICS countries’ recent moves away from the US dollar. South Africa’s BRICS Ambassador, Anil Sooklal, has clarified that the focus will be on promoting local currencies within the bloc.
“Trading in local currencies is clearly on the agenda,” Sooklal told Bloomberg in an interview. “There is no de-dollarization agenda item on the BRICS agenda.” The dollar will remain a prominent global currency; that is a given.”
Sooklal emphasized that BRICS is not a counter to the West or the G7, as some narratives suggest. Instead, the alliance aims to “advance the agenda of the Global South and build a more inclusive, representative, just, and fair global architecture.”
As reported by CoinGape, rich dad poor dad author Robert Kiyosaki predicted that a common BRICS currency will be end of US dollar as global reserve.
Expansion and currency development
The forthcoming meeting, set to take place in Johannesburg from August 22-24, will likely discuss the bloc’s enlargement and the setting up of a unified payment system. The August 22-24 Johannesburg conference is anticipated to focus on bloc enlargement and a uniform payments system. As negotiations continue, a technical committee may contemplate a shared currency, a long-term goal.
More than 42% of the world’s population, 23% of GDP, and 18% of trade are BRICS, founded in 2009-10. However, the union has yet to fully fulfill its geopolitical dominance and economic might. The summit will likely be critical in establishing a more comprehensive and balanced global architecture.
The alliance’s economic reach is evident, with BRICS members striving to conduct more trade in their currencies to gain global influence and counterbalance US dominance. The New Development Bank, established by BRICS, aims for a third of its lending to be in domestic currencies by 2026.
BRICS’s upcoming summit holds promise for the future expansion of the alliance and the strengthening of local currencies. As Morocco awaits the decision on its membership request, the world looks on with interest at the summit’s potential outcomes.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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