BRICS is an interstate group of the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China, and the Republic of South Africa. On 1 January 2024, the bloc expanded by new countries, namely Egypt, Iran, the United Arab Emirates and Saudi Arabia. Indonesia officially joined as a member state in early 2025, becoming the first Southeast Asian and ASEAN member.
The group has already implemented several successful initiatives such as the New Development Bank, the BRICS Contingent Reserve Arrangement, BRICS Pay, the BRICS Joint Statistical Publication, BRICS basket reserve currency, among others. In its first 15 years BRICS has established almost 60 intra-group institutions, and think-tanks to dialogues, covering agenda in 34 subjects. These nations control 42% of global foreign exchange reserves and represent more than 35% of world GDP as of 2025.
Central Bank Digital Currencies (CBDCs) are digital forms of a nation’s official currency, issued and regulated by the central bank. They aim to combine the stability of traditional fiat money with the efficiency of digital payments, offering a government-backed alternative to cash and private digital assets.
On the other hand, cryptocurrencies — such as Bitcoin and Ethereum — have emerged as decentralized, blockchain-based digital assets, offering borderless and often discreet transactions. Unlike CBDCs, they operate independently of central banks and rely solely on blockchain. The rise of cryptocurrencies has prompted central banks worldwide to explore CBDCs as a means to modernize financial systems, enhance payment security, and counter the volatility and regulatory challenges posed by private digital currencies.
Brazil, the Chair for BRICS as of 2025, aims to leverage blockchain technology to create a secure infrastructure that reduces transaction costs and processing times between member nations, using, most likely, the CBDC between countries. This approach represents a pragmatic solution to smoothen the economic cooperation while avoiding direct confrontation with US Dollar dominance.
- The Rise of BRICS+ and the Push for Economic Independence
- Why is there a Discussion for “New Currencies”?
- BRICS and Digital Assets: Adopting or Creating Digital Currencies
- The Future of Global Digital Currency for All
- Technological Framework
- The Challenge of Diversifying and Moving onto Crypto and CBDCs
- A Transformation In Progress
The Rise of BRICS+ and the Push for Economic Independence
BRICS has transformed from a loosely defined geopolitical group into a formidable economic bloc with growing global influence. Initially conceptualized in the early 2000s as a group of major emerging markets, BRICS has since developed institutional frameworks, including the abovementioned New Development Bank (NDB) and economic cooperation agreements, to counter Western-dominated financial structures.
With the expansion to BRICS Partners members during the Russian BRICS Presidency in 2024, Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Thailand, Uganda, Uzbekistan and Nigeria were announced as ‘partner countries’ of the group as of January 1st, 2025. Moreover, additional 30 nations have already expressed their interest in participating in the BRICS, either as members, partners, or observers. The most recent being Armenia.
This shift positions BRICS as a key player in the multipolar world order, challenging traditional economic power centers and promoting South-South cooperation, particularly in digital finance, infrastructure, and sustainable development.
Why is there a Discussion for “New Currencies”?
The main reason is geopolitical tensions and sanctions. Nations like China, Russia, Iran, Venezuela, Myanmar, North Korea, among others, have faced economic sanctions from the Western countries, limiting their access to dollar-based financial systems. This has prompted them to explore alternative payment mechanisms to mitigate the impact of such sanctions.
Another important aspect is the trade imbalances and currency diversification. Relying heavily on the US dollar can expose countries to vulnerabilities associated with US economic policies and currency fluctuations. Thus, BRICS countries came to the conclusion that they need to diversify reserves and conducting trade in local currencies. BRICS nations aim to reduce these risks and promote economic and monetary stability, regardless of the threats from western nations.
Last but not the least is the development of independent financial systems. Initiatives like BRICS Pay — a decentralized payment messaging system — illustrate efforts to create financial infrastructures independent of Western-dominated systems like SWIFT. Such platforms enable secure and efficient transactions in local currencies, reducing dependence on the American Dollar.
BRICS and Digital Assets: Adopting or Creating Digital Currencies
BRICS+ nations, as well as other countries of the Global Majority, have been actively exploring the adoption and creation of digital currencies to enhance financial autonomy and streamline cross-border transactions. Below are some of the most promising solutions for mass adoptions:
- A) mBridge Initiative: A notable development is the mBridge (Multiple CBDC Bridge) project, a collaborative effort involving the Hong Kong Monetary Authority, the Bank of Thailand, the Central Bank of the United Arab Emirates, the Digital Currency Research Institute of the People’s Bank of China, and the BIS Innovation Hub Hong Kong Centre. This platform aims to facilitate real-time, peer-to-peer cross-border payments and foreign exchange transactions using CBDCs.
- B) BRICS Bridge Proposal: During the BRICS summit in Kazan in October 2024, the new initiative “BRICS Bridge,” was introduced, presenting a new international payments framework utilizing blockchain and digital currencies.
- C) Transfero: Transfero is a regulated blockchain-based company that provides the financial solutions and necessary infrastructure for local, cross-border payments, and crypto services in Latin America and Europe, and soon to be launched in Eurasia, Africa, and several parts of Asia. Transfero has been instrumental in advancing digital currency initiatives within Brazil, particularly through its stablecoin BRZ. Transfero disposes of all necessary tools to be involved with the BRICS nations’ to diversify payments and use different digital financial assets, both fiat and cryptocurrencies.
The Future of Global Digital Currency for All
The future of sending payments globally, brings the potential to truly revolutionize global trade, instant investments and payments, as well as financial cooperation. By introducing a shared cryptocurrency or interoperable CBDCs, Global Majority countries will diversify their financial basket leading to offering a more efficient and independent system for cross-border transactions.
Shared Digital Currency for Intra-Group Trade
Here are some of the main benefits regarding the use of blockchain technology inside the economic bloc:
- Reducing Transaction Costs:
A shared BRICS+ digital currency, whether through CBDCs or crypto systems, would decrease the need for intermediary currencies. This would lower conversion fees and transaction costs, making trade more efficient. BRICS Pay and centralized or decentralized crypto tools provide flexibility for businesses to choose payment methods suited to their needs. - Enhancing Settlement Efficiency:
Blockchain or other DLT-based digital currencies would allow real-time settlement of payments, significantly improving liquidity and reducing risks such as payment delays. This enables faster, more reliable cross-border transactions within BRICS+ countries. - Strengthening Economic Cooperation:
A shared payment system would deepen economic ties among BRICS+ nations, reducing dependence on Western financial systems. BRICS Pay and cryptocurrencies would offer businesses decentralized alternatives (B2B, B2C, B2G, C2C, C2G, G2G), ensuring smoother cross-border trade and greater economic resilience.
Technological Framework
BRICS+ countries are aligned on using the blockchain and DLTs to create a robust, secure, and scalable digital currency system. Blockchain ensures transparency, security, and decentralization, while alternative DLTs, like DAG or Hashgraph, provide scalable solutions for managing multi-national digital currencies.
Transfero, a regional, and soon-to-be a premium solution in digital payment solutions for the Global Majority, is aligned with the development of BRICS+ digital payment infrastructures. By supporting both blockchain based solutions, Transfero is ready to assist BRICS nations in adopting seamless, cross-border digital payments that improve trade efficiency.
The Challenge of Diversifying and Moving onto Crypto and CBDCs
While the idea of adopting digital assets within BRICS+ nations is promising, several challenges accompany this shift toward a fully digital financial ecosystem. Transitioning solely to crypto and CBDCs raises concerns related to economic stability, infrastructure readiness, and regulatory frameworks.
- Economic Stability:
When it comes to cryptocurrencies, they are still inherently volatile, and their adoption on a national scale could introduce risks to economic stability. While they offer advantages like reduced transaction costs and independence from traditional financial systems, the fluctuation of digital currencies could undermine confidence in the financial system. For instance, price instability could complicate trade agreements, especially for nations with weaker financial systems. - Infrastructure Challenges:
The implementation of CBDCs and widespread cryptocurrency adoption requires significant investment in digital infrastructure. BRICS+ nations and partners, especially those with limited technological resources, may face difficulties in rolling out the necessary systems to support digital currencies. These challenges include ensuring secure and reliable internet access, setting up transaction processing systems, and training citizens and businesses on how to use digital currencies effectively. - Regulatory and Legal Frameworks:
Many BRICS+ countries face hurdles in establishing the regulatory and legal frameworks required to manage digital currencies. While cryptocurrencies are decentralized, CBDCs are controlled by central banks, requiring a robust legal framework to ensure their legitimacy and regulate their usage. Issues around taxation, privacy, and anti-money laundering (AML) regulations need to be addressed to ensure that the transition does not inadvertently fuel illicit financial activities. - Digital Divide:
Not all populations in BRICS+ countries are equipped to fully engage in digital payments or cryptocurrency usage, as well as the sufficient level of financial and technological literacy. The digital divide—especially in rural or underdeveloped regions—could hinder the success of a nationwide shift to digital currencies. This divide could exacerbate existing inequalities, preventing certain groups from benefiting from these advancements.
Despite these challenges, the potential of moving toward a digital currency system is the question not if, but when. Countries may need to adopt a hybrid approach, gradually integrating CBDCs and cryptocurrencies into existing financial systems while addressing these obstacles. This balance could allow BRICS+ nations to embrace digital currencies without jeopardizing economic stability or alienating large sections of their populations.
A Transformation In Progress
The move toward crypto and CBDCs within BRICS+ presents a transformative opportunity, but it is not without its complexities. Navigating the balance between economic stability, technological infrastructure, and regulatory frameworks will be critical to ensuring the success of a digital currency ecosystem.
As BRICS+ nations continue to explore these solutions, collaboration and cautious implementation will be key in realizing the full potential of digital currencies for global trade and economic resilience.
