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What Is BRICS Bridge and Why Does It Matter?
BRICS Bridge, also known as Project mBridge, is a blockchain-based cross-border payment platform that enables near-instant settlements using central bank digital currencies (CBDCs), bypassing the traditional SWIFT network and dollar-denominated correspondent banking. Under India's 2026 BRICS chairmanship, the platform has moved from pilot to expanded operational deployment, processing over $55.5 billion in transactions by early 2026 — a 2,500-fold surge from 2022 levels. With intra-bloc local currency settlements now exceeding 67% and the dollar's share of global reserves dipping below 57% for the first time in three decades, a multipolar financial order is emerging not through sudden collapse but through gradual infrastructure shifts.
The BRICS Bridge payment system represents the most concrete de-dollarization effort to date, combining CBDC interoperability with gold-backed settlement tokens to create a parallel financial architecture for the 11-member bloc, which now represents over 37% of global GDP.
The Strategic Context: India's 2026 Chairmanship
India assumed the BRICS presidency for the fourth time in 2026 under the theme "Building for Resilience, Innovation, Cooperation and Sustainability" (BRICS). The chairmanship has accelerated two parallel financial infrastructure projects: BRICS Bridge (mBridge) for CBDC-based settlements and BRICS Pay, a SWIFT alternative designed to bypass dollar-denominated clearing systems. According to the official BRICS 2026 website, key pillars include strengthening economic resilience, promoting digital innovation, and deepening multilateral cooperation.
The timing is critical. The weaponization of financial sanctions — particularly the freezing of $300 billion in Russian central bank reserves in 2022 — has driven non-Western financial autonomy. Central banks across the bloc have accumulated over 2,100 tonnes of gold since 2022, with 2025 seeing a record 1,237 tonnes purchased globally.
How BRICS Bridge Works: CBDC Interoperability in Practice
The Technology Stack
Project mBridge was originally developed by the central banks of Hong Kong, Thailand, the UAE, and China, in collaboration with the Bank for International Settlements (BIS) Innovation Hub. Saudi Arabia joined in 2024. However, the BIS withdrew from mBridge in 2025 over sanctions compliance concerns, prompting BRICS nations to continue independently. The platform operates on a permissioned blockchain that allows real-time CBDC settlements between participating central banks, eliminating the need for correspondent banking intermediaries.
The Role of the Unit: Gold-Backed Settlement Token
Complementing BRICS Bridge is "The Unit," a gold-backed digital settlement token launched in 2026. Composed of 40% physical gold and 60% a basket of member currencies (including the yuan, rupee, real, and ruble), the Unit operates on a permissioned Cardano blockchain. It is designed exclusively for institutional settlement of energy and commodity trades, not for daily consumer transactions. Saudi Arabia now settles 22% of its crude exports to China in yuan, and the UAE has followed suit, further eroding the petrodollar system.
The gold-backed digital currency provides a neutral store of value that reduces exposure to any single national currency, addressing a key trust deficit among BRICS members.
De-Dollarization by the Numbers
The structural shift in global finance is measurable across multiple indicators:
- Dollar reserve share: The U.S. dollar's share of global foreign exchange reserves fell to 56.3% in Q1 2026 (IMF COFER data), down from 71% in 2000 and the lowest since modern records began.
- Local currency trade: Intra-BRICS local currency settlement has reached 67%, up from under 30% a decade ago. China and Russia cleared $244.8 billion in bilateral trade in 2024, mostly bypassing the dollar.
- Gold purchases: Central bank gold purchases exceeded 1,000 tonnes annually for three consecutive years (2023-2025), with gold's share of global reserves rising from 4% to approximately 20%.
- Treasury holdings: Foreign holdings of U.S. Treasuries fell from $7.2 trillion to $6.5 trillion as BRICS nations diversified reserve assets.
- SWIFT share: The dollar's share of global payment messages dipped to 49.7% in January 2026, while the yuan's share rose to 4.5%.
Despite these trends, the dollar still facilitates 88-89% of global forex transactions, underscoring that the transition is gradual rather than abrupt. The dollar reserve status decline is a structural erosion, not a collapse.
Impact on Global Finance and Sanctions Policy
The emergence of BRICS Bridge and associated infrastructure has profound implications for the international financial system. For the United States, declining reserve share means higher borrowing costs as foreign demand for Treasuries softens. The DXY (U.S. Dollar Index) slipped to around 99.5 in April 2026, with Morgan Stanley and Goldman Sachs projecting further weakness toward 94-99.
For multinational corporations, the fragmentation of payment rails introduces complexity. McKinsey's 2026 trade update confirms global commerce is fracturing along geopolitical lines, with US-China trade shrinking 30% and over $165 billion in trade flows redirected. Companies must now maintain access to both dollar-based and BRICS-based settlement systems.
The sanctions evasion through CBDCs is a particular concern for Western policymakers. BRICS Bridge allows member nations to settle transactions without exposure to dollar-based sanctions enforcement, effectively creating a sanctions-proof corridor for energy, commodities, and strategic goods.
Expert Perspectives
"The BRICS Bridge represents the most significant challenge to dollar hegemony since the end of Bretton Woods," says Dr. Elena Kuznetsova, a geopolitical economist at the Moscow-based Institute of World Economy. "But it is not a replacement — it is a parallel system. The dollar will remain dominant for years, but its monopoly is broken."
Mark Carney, former Bank of England governor, has noted that "the multipolar reserve system is already here. Gold, digital currencies, and regional payment systems are all competing for reserve status alongside the dollar, euro, and yuan."
Frequently Asked Questions
What is BRICS Bridge?
BRICS Bridge (Project mBridge) is a blockchain-based platform enabling real-time cross-border payments and settlements using central bank digital currencies (CBDCs), bypassing the SWIFT network and dollar-denominated correspondent banking.
Is there a single BRICS currency?
No. There is no unified BRICS currency for daily transactions. Instead, BRICS has developed "The Unit," a gold-backed digital settlement token for institutional trade settlement, and BRICS Bridge for CBDC interoperability.
How much trade is settled in local currencies?
Intra-BRICS local currency settlement has reached approximately 67% in 2026, up from under 30% a decade ago, according to multiple sources.
What is the dollar's share of global reserves now?
The U.S. dollar's share of global foreign exchange reserves fell to 56.3% in Q1 2026, the lowest level since 1995, according to IMF COFER data.
Will the dollar lose reserve status?
Most experts view a gradual transition toward a multipolar system as the most likely outcome, where the dollar shares dominance with the euro, yuan, gold, and digital currencies, rather than an outright collapse.
Conclusion: The Multipolar Future
BRICS Bridge and the broader de-dollarization movement represent a structural shift in global finance that is already underway. Under India's 2026 chairmanship, the bloc has demonstrated that alternative payment infrastructure can scale rapidly when geopolitical incentives align. While the dollar retains significant advantages — deep capital markets, rule of law, and network effects — its monopoly on international finance is ending. The world is moving toward a multipolar reserve system where multiple currencies and settlement assets coexist, and BRICS Bridge is the infrastructure that will enable that transition.
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