The global financial landscape is undergoing a profound transformation as the BRICS alliance—comprising Brazil, Russia, India, China, and South Africa—takes bold steps to challenge the longstanding dominance of the U.S. dollar and Western financial systems. Over the past several years, this bloc has not only tightened its grip on the world’s gold supply but has also accelerated its push into blockchain technology, with recent moves by Iran and other aligned nations signaling a new era of monetary innovation and geopolitical maneuvering.
As of December 20, 2025, BRICS and its aligned partners control approximately 50% of global gold production, according to data compiled by Watcher Guru. This remarkable share comes from the combined output of member and aligned nations, including powerhouses like China, Russia, Kazakhstan, Iran, and Uzbekistan. In 2024 alone, China produced 380 tonnes of gold, while Russia contributed 340 tonnes, both nations systematically diversifying away from dollar assets. The World Gold Council has noted that central banks worldwide have purchased more than 1,000 tons of gold annually from 2022 to 2024, marking the longest continuous buying streak in modern history.
This surge in gold accumulation is no accident. It reflects a deliberate strategy by BRICS to build a financial bulwark against the volatility and perceived unreliability of the dollar, especially in light of Western sanctions—most notably those imposed on Russia after the 2022 Ukraine invasion. The bloc’s collective gold reserves now exceed 6,000 tons, with Russia leading at 2,336 tonnes, China at 2,298 tonnes, and India holding 880 tonnes. Brazil, too, has ramped up its holdings, adding 16 metric tonnes in September 2025—its first such purchase since 2021—bringing its reserves to 145.1 tonnes.
Frank Giustra, a prominent Canadian mining investor, captured the mood at the Precious Metals Summit in Beaver Creek, Colorado: “Now, believe it or not, we are in the era of hard money. If you own paper gold, you do not own real gold. When the crisis comes, it will not be there.” His words echo a growing sentiment among both investors and policymakers that tangible assets like gold offer a safer haven in uncertain times.
But BRICS isn’t stopping at stockpiling gold. The alliance is actively developing alternative financial systems to reduce its reliance on the dollar. On October 31, 2025, the bloc launched a pilot program for a gold-backed currency instrument known as the “Unit.” This new currency prototype is pegged to 1 gram of gold and backed 40% by physical gold and 60% by BRICS national currencies. The initial release saw 100 Units enter circulation, representing a significant step toward creating independent pricing and settlement platforms.
Yevgeny Biryukov, an economics expert, explained the rationale behind this move in a December 13 interview with Russian media: “For BRICS countries, gold is a tool for protection against sanctions risks, a response to the unreliability of traditional partners, and a real asset with a thousand-year history of recognition.” Indeed, the shift away from the dollar is not just about economics but also about geopolitical autonomy. Russia and China now settle nearly all of their mutual trade in yuan and rubles, fundamentally transforming bilateral commerce and setting a precedent for other member states. Within the Eurasian Economic Union, trade is now conducted almost exclusively in member currencies.
Meanwhile, BRICS is making waves in the digital realm. As reported by Bloomberg in October 2024, the BRICS Lab Network—a collaborative initiative among member states—has welcomed Iran into its fold, aiming to slash blockchain research costs by up to 30%. This network pools resources, expertise, and funding, allowing BRICS nations to compete with U.S. and European tech giants. Iran, long hamstrung by international sanctions, sees blockchain as a lifeline to participate in global trade without relying on conventional banking systems.
The impact of these efforts is already being felt in the cryptocurrency market. As of December 19, 2025, Bitcoin traded at $88,316, up 3.30% in 24 hours, while Ethereum surged 5.91% to $2,988.27, according to CoinGecko. Despite this bullish momentum, the Fear & Greed Index sits at an “extreme fear” level of 16, highlighting the market’s underlying anxiety amid regulatory uncertainty and macroeconomic headwinds. Altcoins collectively hold a 30.99% market share, reflecting the sector’s diversity and dynamism.
Tom Lee, co-founder of Fundstrat Global Advisors, told CNBC, “This could be a turning point for emerging markets in the crypto space. Lowering the cost of innovation democratizes access to cutting-edge tech, and that’s bullish for adoption.” Many analysts agree that the BRICS Lab Network could accelerate blockchain advancements in scalability, privacy, and cross-border transactions—areas where current crypto networks often fall short.
Yet, challenges remain. Regulatory uncertainty is a persistent risk, with China maintaining a strict ban on cryptocurrencies and India adopting a more cautious approach. Political friction within BRICS and inconsistent frameworks could slow progress, as noted by analysts at JPMorgan. Nevertheless, the consensus among market watchers is that these developments are too significant to ignore.
For investors, the implications are profound. Reduced research costs could lead to faster innovation, attracting institutional interest and potentially driving up the prices of major cryptocurrencies. Bitcoin, for example, is increasingly seen as “digital gold,” and if BRICS nations adopt it for cross-border settlements, its value could soar. Some experts predict that Bitcoin could reach $150,000 by 2026 if institutional and regional adoption align. Meanwhile, Ethereum’s dominance in decentralized finance and upcoming scalability upgrades position it as a favorite in emerging markets.
However, the path forward is fraught with risks. Any regulatory crackdown in a BRICS nation could trigger global sell-offs, and macroeconomic instability—such as inflation or interest rate hikes in the U.S.—could dampen risk appetite. The key, experts suggest, is diversification and due diligence: focus on projects with robust fundamentals, active developer communities, and real-world utility.
In a bid to further cement its influence, BRICS is also working to establish an independent “BRICS Gold Price” benchmark, challenging the dollar-dominated systems that have long set global gold prices. The alliance has created a joint gold pool for market stabilization and is developing shared infrastructure across Russia, China, the UAE, and South Africa. These moves, combined with the bloc’s tightening control over both physical and digital assets, signal a fundamental restructuring of international finance.
As BRICS forges ahead with its gold-backed currency, blockchain innovation, and de-dollarization strategy, the world watches closely. The alliance’s actions are not just reshaping commodity markets and digital finance—they’re redrawing the geopolitical map. For now, one thing is clear: the era of uncontested dollar dominance is facing its most formidable challenge in decades.
