September was an interesting month for journalists watching the BRICS alliance.
The bloc made a few moves related to digital currencies and tokenized financial instruments, and its members made several statements denouncing and criticizing United States President Donald Trump’s trade tariffs as he threatened an additional 10% tariff on nations aligning with BRICS.
BRICS slams US trade tariffs
At the United Nations General Assembly on September 27, BRICS foreign ministers issued a joint statement condemning the U.S. trade tariffs, labeling them a “proliferation of trade-restrictive actions.”
Brazilian President Lula da Silva called U.S. import duties “tariff blackmail” and called for BRICS countries to work closer together.
China’s yuan stablecoin goes to Kazakhstan
Unlike the U.S., the People’s Republic of China will not be leaving stablecoins to the free market. The AxCNH was announced during the 10th BRI Summit. Its main purpose is the international settlement of transactions related to Belt and Road Initiative (BRI) projects.
In September, China rolled out the yuan-pegged stablecoin in neighboring Kazakhstan. This clearly signals China’s intention to take the yuan international and directly challenge US dollar dominance.
China’s e-Yuan has been in various pilots since 2020 in cities like Shenzhen, Chengdu, and Suzhou. Since then, it has expanded to many other cities and is used in retail payments, public transport, and more.
New Development Bank to issue rupee-denominated bonds
The BRICS New Development Bank (NDB) is planning to issue its first bonds denominated in Indian rupees. By 2026, it aims to issue USD 300-500 million in three- to five-year tranches.
Since it launched in 2015, the NDBk has used the Chinese yuan and the South African rand in its financing operations. Introducing the rupee lines up with BRICS’ stated intention of utilizing member state currencies and reducing dependence on the USD.
What does this news tell us?
It must be noted that BRICS has toned down its de-dollarization rhetoric since the re-election of Donald Trump in 2024. That said, these moves clearly signal that BRICS intends to continue reducing its reliance on the USD and will keep building alternative payment rails.
Inevitably, blockchain technology and digital currencies will play a role in how all of this looks in its final form. Right now, multiple BRICS members and partners are developing central bank digital currencies (CBDCs), and they tend to be far ahead of Western countries with regards to digital currencies and payment rails.
While the tone may have changed, the aim remains the same — challenge the global dominance of the USD and circumvent Western payment systems like SWIFT. There’s no stopping BRICS in that regard.
Watch | From BRICS to blockchain: How global trade and digital currencies are evolving
