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In September 2026, the BRICS bloc is set to launch BRICS Pay, a blockchain-based cross-border payment system designed to bypass the SWIFT network and reduce reliance on the US dollar. With the dollar's share of global foreign exchange reserves at a 30-year low of 56.77% as of Q4 2025, according to IMF COFER data, this initiative represents the most concrete challenge to the US-led financial order in decades. By integrating national payment networks and central bank digital currencies (CBDCs) from Brazil, Russia, India, China, and other member states, BRICS Pay could accelerate the multipolar shift in global finance — but it also carries risks of fragmentation for global trade and financial stability.
What is BRICS Pay?
BRICS Pay is a decentralized payment messaging system affiliated with the BRICS intergovernmental organization, which now comprises 11 member countries: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa, and the United Arab Emirates. The system allows member states to make and receive cross-border payments in their own local currencies, bypassing both the SWIFT messaging network and the US dollar as an intermediary. First conceptualized in 2018 by the BRICS Business Council, a prototype was unveiled in Moscow in October 2024, with full operational deployment targeted for the 18th BRICS Summit in New Delhi on September 12-13, 2026.
Technical Architecture: Blockchain and CBDC Integration
Decentralized Cross-Border Messaging System (DCMS)
At the core of BRICS Pay is the Decentralized Cross-border Messaging System (DCMS), developed by scientists at Saint Petersburg State University in Russia. DCMS operates without a central hub or owner; each participant manages their own node, making the system resistant to external control or sanctions. Messages are encrypted and signed, with multiple encryption mechanisms available. The system claims to process up to 20,000 messages per second with no mandatory transaction fees, though participants may optionally charge one another. DCMS is planned to be open-source after its pilot phase.
CBDC Interoperability
Rather than creating a single BRICS currency, the bloc is building interoperable infrastructure linking existing national digital currencies — India's digital rupee (e₹), China's digital yuan (e-CNY), and Russia's digital ruble. Two key mechanisms enable this: settlement cycles, which periodically net trade balances to reduce currency movement needs, and forex swap lines, which provide liquidity safety nets between central banks. India's central bank, the Reserve Bank of India, is leading technical coordination, leveraging its successful experience with the Unified Payments Interface (UPI), which processed over 100 billion transactions in 2025.
Geopolitical Drivers: Why Now?
The push for BRICS Pay is fundamentally geopolitical. The freezing of approximately $300 billion in Russian central bank reserves following the 2022 invasion of Ukraine demonstrated the risks of dollar dependence. Russia, now the most sanctioned country in the world, has been the strongest proponent of BRICS Pay. Iran, also under US sanctions, views the system as a top national priority. Brazilian President Luiz Inácio Lula da Silva has stated, 'The multipolar order we aim for is reflected in the international financial system.'
The dollar's declining reserve status adds urgency. According to IMF data, the dollar's share of global reserves fell from over 70% in 2000 to 56.77% in late 2025, its lowest level on record. Central banks, particularly in BRICS+ nations and Eastern Europe, have diversified into gold — purchasing 863 tonnes in 2025 alone, led by Poland, India, and China. Gold now accounts for an estimated 30% of global central bank reserves, up from 13% in 2017. Meanwhile, China's Cross-Border Interbank Payment System (CIPS) processed roughly 180 trillion yuan in 2025, offering a growing alternative to SWIFT.
Impact on Dollar Hegemony: Threat or Evolution?
BRICS Pay does not aim to destroy the dollar but to create a parallel financial ecosystem. The BRICS de-dollarization strategy is pragmatic: 90% of Russia's trade with BRICS members is already conducted in local currencies. If BRICS Pay achieves widespread adoption among the bloc's 11 members and 10 partner countries (including Belarus, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, and Vietnam), it could significantly reduce demand for dollar-denominated trade settlement and reserves.
However, the dollar's dominance remains formidable. Total dollar reserves still exceed $6.7 trillion in absolute terms. The US retains powerful tools to defend dollar primacy, including sanctions, SWIFT access control, and influence over dollar-denominated stablecoin frameworks. Experts warn that the structural decline of the dollar could raise US borrowing costs by 50-100 basis points over the next decade, but most agree the dollar will retain reserve status in a multipolar system.
Risks: Fragmentation and Financial Stability
The rise of BRICS Pay also carries significant risks. The global financial fragmentation could create competing payment rails, increasing transaction costs and reducing transparency. The mBridge platform for wholesale CBDC settlements has already reached approximately $55 billion in payment volumes, but internal challenges persist — including India-China rivalry, regulatory diversity among member states, and the non-convertibility of certain currencies. The G20 may diminish in relevance as the G7 and BRICS+ become the primary poles of global decision-making, according to CommandEleven Intelligence forecasts.
US President Donald Trump has threatened 100% tariffs on BRICS countries if they move away from the dollar, though no official response has come from BRICS leaders. The US response to BRICS Pay will be critical in determining whether the system remains a niche alternative or becomes a mainstream competitor.
Expert Perspectives
Economists remain divided. Some view BRICS Pay as a natural evolution toward a multipolar financial system that better reflects the shifting balance of global economic power. Others warn that fragmentation could undermine the stability provided by a single dominant reserve currency. 'The dollar's hegemony is not ending overnight, but the infrastructure for an alternative is being built in real time,' notes a senior fellow at the Atlantic Council. The future of the dollar as reserve currency will depend on how quickly BRICS Pay scales and whether it can attract non-member economies.
Frequently Asked Questions
When will BRICS Pay launch?
BRICS Pay is scheduled for operational launch at the 18th BRICS Summit in New Delhi, India, on September 12-13, 2026.
How does BRICS Pay differ from SWIFT?
SWIFT is a centralized messaging network dominated by Western banks and denominated in US dollars. BRICS Pay is a decentralized, blockchain-based system that enables direct local-currency transactions without dollar conversion or SWIFT intermediation.
Will BRICS Pay replace the US dollar?
Not immediately. BRICS Pay aims to create a parallel payment ecosystem for intra-bloc trade, reducing dollar dependence gradually. The dollar remains dominant in global reserves and trade, but its share is declining.
Which countries are participating in BRICS Pay?
All 11 BRICS member states (Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa, UAE) plus 10 partner countries are expected to participate initially.
What are the main risks of BRICS Pay?
Key risks include financial fragmentation, regulatory divergence among members, geopolitical tensions (especially India-China rivalry), and potential US retaliation through tariffs or sanctions.
Conclusion: A Defining Strategic Story of 2026
BRICS Pay represents the most concrete institutional challenge to the US-led financial order in decades. With the dollar at a 30-year reserve low and BRICS economies projected to grow 3.7% in 2026 versus the G7's 1.1%, the initiative has both economic momentum and geopolitical urgency. Whether BRICS Pay succeeds in creating a truly multipolar financial system — or fragments global payments into competing blocs — will be one of the defining strategic stories of 2026 and beyond.
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