- Russia’s SWIFT exclusion in 2022 spurred different system planning.
- BRICS members search autonomy in worldwide settlements.
- XRP’s pace and cost-efficiency seen as excellent for institutional use.
A brand new idea circulating amongst cryptocurrency and geopolitical analysts means that BRICS nations—Brazil, Russia, India, China, and South Africa—may be working behind the scenes to develop a gold-backed monetary system utilizing Ripple’s XRP Ledger.
This comes because the bloc continues efforts to cut back dependency on the US-led SWIFT community and the dollar-dominated international economic system.
While unconfirmed by any authorities, the speculation is gaining consideration due to mounting proof of BRICS cooperation on forex independence and blockchain innovation.
How the US maintains dominance in international finance
The international monetary system is basically underpinned by three core levers of Western affect: the dominance of the US dollar, the SWIFT interbank messaging system, and the liquidity framework ruled by Western central banks.
SWIFT permits worldwide banking communication and has change into a instrument for imposing sanctions. In 2022, Russia was ejected from SWIFT as a part of coordinated Western sanctions, prompting the Kremlin to speed up efforts to create different channels for cross-border funds.
By slicing off entry to dollar reserves and freezing foreign-held belongings, the US has demonstrated the strategic energy of economic infrastructure.
Countries seen as politically adversarial or non-aligned are more and more cautious of this technique, viewing it as a vulnerability fairly than a impartial platform for trade.
Why BRICS desires out of the dollar system
Each member of BRICS has its personal incentive to cut back publicity to the dollar. Russia’s exclusion from SWIFT and asset seizures have compelled it to pursue monetary independence. China is looking for to insulate its rising economic system from Western monetary strain.
India and Brazil are wanting to enhance autonomy in worldwide settlements, whereas South Africa has expressed curiosity in strengthening regional currencies.
This shared goal has sparked renewed calls throughout the bloc for a brand new system of worth change—one that doesn’t depend on Western mechanisms.
BRICS nations have already mentioned launching a shared forex backed by commodities, and gold is considered as probably the most viable asset for such backing due to its stability and international acceptance.
XRP Ledger as a bridge for gold-backed trade
According to the speculation, Ripple’s XRP Ledger might function the digital bridge between native 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 charges.
Unlike Bitcoin or Ethereum, XRP presents scalability and predictable prices—key for governments and central banks processing giant transactions.
In this mannequin, BRICS wouldn’t concern a brand new public token however as a substitute use XRP’s present infrastructure to settle trades. Gold could possibly be held in nationwide vaults or regional repositories, and XRP could be the mechanism by means of which worth is transferred shortly and securely.
This would permit BRICS nations to bypass SWIFT and the dollar, whereas sustaining compliance and auditability by means of the XRP Ledger.
Strategic alerts and unconfirmed strikes
Although no official affirmation exists that BRICS is actively testing or adopting XRP, a number of developments have drawn hypothesis. Russia has already proposed a gold-pegged stablecoin for cross-border trade with pleasant nations.
China continues to develop its digital yuan pilot. Ripple has additionally been increasing its presence in Asia, the Middle East, and Latin America—areas aligned with BRICS pursuits.
The idea stays speculative, however it’s rooted in a broader pattern of de-dollarisation and rising curiosity in blockchain-based infrastructure for sovereign monetary techniques.
Analysts argue that if BRICS succeeds in deploying a decentralised, asset-backed settlement mannequin, it might reshape the way forward for worldwide finance and problem the prevailing energy buildings dominated by the West.
