BRICS’s Stablecoin Paradox: Using Dollar-Backed Coins to Escape Dollar Dominance

The BRICS forum held in Brazil in September 2025 underscored a strategic push by member nations to leverage stablecoins as a tool to reduce dependence on the U.S. dollar. Discussions highlighted the bloc’s growing economic influence, with 45% of the global population represented, and emphasized the need for financial sovereignty amid U.S. sanctions and geopolitical tensions. A key focus was the potential of dollar-pegged stablecoins like USDT and USDC to facilitate cross-border transactions, though long-term goals include commodity-backed alternatives. Data from CoinMarketCap revealed a 210% surge in stablecoin usage within BRICS nations since 2023, reflecting a trend accelerated by the forumBRICS Forum in Brazil Advocates for Stablecoins to Challenge the …^[1].

Geopolitical motivations underpinned the advocacy for stablecoins. Russia’s use of cryptocurrencies to bypass sanctions and India’s UPI-linked CBDC pilot demonstrated practical steps toward de-dollarization. Brazil proposed tokenizing commodity reserves, such as soybeans and oil, to collateralize stablecoins, offering a tangible alternative to traditional trade mechanisms. TradingView data indicated the dollar’s share in BRICS trade had dropped to 58% in Q2 2025, down from 79% in 2022BRICS Forum in Brazil Advocates for Stablecoins to Challenge the …^[1]. However, challenges remain, including the dominance of U.S. dollar-pegged stablecoins, which account for 97% of the marketBRICS to Launch Gold-Backed Stablecoin To …^[7], potentially reinforcing dollar hegemony despite de-dollarization efforts.

The forum also addressed the tension between stablecoins and central bank digital currencies (CBDCs). While China’s digital yuan (e-CNY) advanced, other BRICS members favored private stablecoins for their speed and flexibility. Hybrid models were proposed, where central banks regulate stablecoin issuers like Binance or BTCC. Skeptics noted that stablecoins still rely on fiat systems, but they were seen as a stepping stone toward fully independent solutionsBRICS Forum in Brazil Advocates for Stablecoins to Challenge the …^[1]. Brazil’s 2025 BRICS presidency prioritized cross-border payments in local currencies over a common currency, aligning with pragmatic efforts to enhance trade efficiencyBRICS won’t launch a common currency in 2025 but …^[3].

The immediate impact on crypto markets was evident. Bitcoin rose 4.2% post-forum as traders anticipated broader adoption, while BRL/USDT trading volume spiked 300% on Brazilian exchanges. Exporters began using USDT to avoid USD conversion fees, signaling practical adoptionBRICS Forum in Brazil Advocates for Stablecoins to Challenge the …^[1]. Meanwhile, Russia’s Deputy Foreign Minister highlighted the potential of a BRICS stablecoin to benefit the masses, though no official launch was announced in 2025BRICS Considering A Stablecoin Launch For International Trade ...^[5]. A proposed gold-backed stablecoin, suggested by analysts like Max Keiser, emerged as a potential counter to U.S. dollar-backed alternatives, leveraging BRICS’ gold reservesBillionaire has a shocking strategy to counter …^[8].

Critics and counterpoints added nuance to the narrative. U.S. President Donald Trump warned BRICS against challenging dollar dominance, threatening tariffs on nations pursuing de-dollarizationBRICS won’t launch a common currency in 2025 but …^[3]. Tether CEO Paolo Ardoino argued that stablecoins like USDT reinforce dollar hegemony by providing a decentralized yet dollar-pegged alternative to traditional systemsDe-Dollarization 2025: Why BRICS Are Choosing Crypto Over the …^[9]. This paradox—using dollar-pegged stablecoins to bypass dollar reliance—highlighted the complexity of the bloc’s strategy. While BRICS nations aim for multipolar finance, the path to full de-dollarization remains fraught with regulatory, technological, and geopolitical hurdlesDe-Dollarization & BRICS: A New Global Power Shift?^[10].

The BRICS bloc’s focus on stablecoins reflects a broader shift in global finance. With 31% of global GDP (PPP) now represented by BRICS members, the alliance’s initiatives are reshaping trade dynamics. However, achieving a unified financial system remains aspirational, with member states prioritizing local currencies and blockchain infrastructure over a single stablecoin or currency. As the 2025 forum demonstrated, the bloc’s strategy balances immediate practicality with long-term ambitions, positioning stablecoins as both a tool and a test of global monetary resilience.