BRICS Nations Consider Adopting Ripple’s XRP for Trade

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BRICS Nations Consider Adopting Ripple's XRP for Trade
Lorenzo B.
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BRICS Nations Consider Adopting Ripple’s XRP for Trade

The BRICS alliance—comprising Brazil, Russia, India, China, and South Africa—is reportedly exploring the adoption of Ripple’s XRP to facilitate gold-backed international trade. If implemented, this strategy could mark a transformative shift in global economics, potentially reducing the BRICS bloc’s reliance on the U.S. dollar as a settlement currency.

This bold move comes amid growing dissatisfaction with dollar dominance, economic sanctions, and a push for financial sovereignty. Ripple’s XRP, known for its speed, low transaction fees, and interoperability, may provide the technological foundation needed for a decentralized, real-time, cross-border payment infrastructure.

The BRICS Bloc’s Strategic Interest in XRP

Challenging the Dollar’s Dominance

The BRICS nations have long expressed concern about the U.S. dollar’s outsized influence in global trade. Over 85% of all international transactions still rely on the dollar, giving the U.S. unmatched leverage over the global economy.

By considering a blockchain-based alternative like XRP, BRICS aims to:

  • Increase monetary independence

  • Avoid U.S.-imposed financial sanctions

  • Facilitate direct trade settlements among member states

Gold-Backed Trade: A New Settlement Standard?

Reports indicate that BRICS may also consider backing trade settlements with physical gold reserves, using Ripple’s XRP ledger as the digital rails for transaction processing. This combination of hard asset backing and blockchain technology would be unique, blending traditional and modern finance.

Gold-backed digital transactions would enhance trust and transparency, particularly in emerging markets where currency volatility is high.

Why XRP? The Technology Behind the Interest

Speed and Efficiency

Ripple’s XRP ledger is designed to handle 1,500 transactions per second, settling in just 3–5 seconds. For comparison, SWIFT payments can take 1–5 business days, depending on the destination. This dramatic speed advantage is critical for trade finance.

Low Cost and Scalability

XRP transactions cost a fraction of a cent, regardless of amount or destination. This cost-effectiveness makes it suitable for high-volume cross-border settlements, including those related to commodities, raw materials, and industrial exports—core sectors for BRICS economies.

Decentralized Ledger Technology

Ripple’s network does not rely on traditional mining like Bitcoin. Instead, it uses a consensus algorithm validated by independent nodes, ensuring fast confirmation without heavy energy consumption. It supports smart contracts and asset tokenization, making it ideal for complex trade ecosystems.

Global Reactions and Economic Implications

Disrupting the SWIFT System

A shift toward Ripple’s XRP by BRICS could weaken the SWIFT interbank system, which currently facilitates the vast majority of cross-border payments. Many BRICS members, especially Russia and China, have experienced SWIFT-related restrictions due to geopolitical tensions.

By adopting XRP or similar blockchain solutions, these nations could effectively bypass Western-dominated financial infrastructure.

Strengthening BRICS’ Economic Integration

XRP adoption could further integrate the BRICS economies, simplifying trade and settlement across very different monetary systems. For example:

  • China could pay Brazil for raw materials using XRP, avoiding currency exchange complications.

  • Russia could sell oil or wheat to India with instant payment clearance.

This mechanism would encourage intra-BRICS trade, supporting the bloc’s ambition to act as a counterweight to the G7.

Potential Challenges and Regulatory Concerns

U.S. Legal Pressure on Ripple

One obstacle to XRP’s global adoption is Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). Although recent rulings have favored Ripple, uncertainty still lingers over XRP’s regulatory classification.

This could make some central banks cautious, especially those with strong economic ties to the U.S.

Infrastructure and Trust

To implement XRP for gold-backed trade, BRICS nations would need:

  • Interoperable banking infrastructure

  • Agreements on valuation mechanisms

  • Shared custody of gold reserves

  • Standardized compliance procedures

Building this system across diverse legal, political, and technological landscapes will be a complex, time-intensive process.

Historical Context: BRICS and the Quest for Monetary Autonomy

A Longstanding Goal

BRICS has consistently advocated for reforming global financial institutions like the IMF and World Bank. The idea of creating a BRICS currency or payment system has been circulating for over a decade.

Ripple’s XRP provides a ready-made solution—one that doesn’t require creating a brand-new asset from scratch. Instead, it offers immediate utility through existing technology and a growing network of institutional users.

De-Dollarization Momentum

The interest in XRP also aligns with a broader trend of de-dollarization. Countries like China and Russia have been actively reducing dollar reserves, promoting bilateral trade in local currencies, and investing in digital currency initiatives.

XRP could accelerate this shift by offering a neutral, borderless, and efficient medium of exchange.

XRP’s Current Adoption Beyond BRICS

Ripple’s Growing Network

Ripple has already partnered with central banks, financial institutions, and remittance providers in over 40 countries. Notable users include:

  • Santander Bank

  • SBI Holdings

  • Tranglo (Asia-Pacific)

  • Novatti Group (Australia)

Ripple also recently launched Ripple CBDC Platform, helping central banks build custom digital currencies on the XRP Ledger—an important step that could attract BRICS interest in programmable, tokenized trade assets.

Conclusion

The possibility that BRICS nations may adopt Ripple’s XRP for gold-backed trade represents more than a technological upgrade—it’s a strategic maneuver with deep geopolitical and economic implications. By reducing reliance on the U.S. dollar and building a blockchain-powered trade infrastructure, BRICS is taking concrete steps toward monetary sovereignty.

While challenges remain, especially in regulatory and interoperability terms, the case for XRP is strong: it’s fast, efficient, scalable, and already battle-tested. If BRICS proceeds with XRP adoption, it could mark the beginning of a new era in international trade, one driven not by fiat dominance—but by decentralized innovation.

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