Has BRICS finally produced an alternative to the “petrodollar” after twenty years? And does it live up to the hype? Depending on where you look online, key details are being left out. So, let’s slow down and review what’s actually happening.

First, let’s do a quick overview. 

What began in 2006 as an informal grouping of Brazil, Russia, India, and China has expanded into a broader coalition commonly referred to as BRICS+. The bloc now includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Indonesia, and the United Arab Emirates, following a series of expansions finalized between 2024 and early 2025.

Collectively, BRICS countries represent a substantial share of global population and economic output, though the bloc remains politically diverse and economically fragmented, ranging from open market economies to tightly controlled financial systems. In addition to full members, BRICS has discussed a looser “partner country” framework, though this category does not carry formal decision-making authority.

Now, let’s talk about this alternative “currency”. 

In late 2025, reports emerged of a prototype digital settlement instrument known as the “Unit”, developed by the International Research Institute for Advanced Systems (IRIAS). While often described online as a “BRICS gold-backed currency,” the Unit is not an official BRICS currency, nor has it been adopted by member governments or central banks.

Instead, the Unit functions as a research-driven pilot project exploring whether a gold-linked digital unit could facilitate trade settlement between participating economies without relying on the U.S. dollar.

According to project descriptions, the Unit’s value is anchored to a composite reserve structure of 40% gold and 60% weighted basket of BRICS currencies, including the Brazilian real, Chinese yuan, Indian rupee, Russian ruble, and South African rand. The initial pilot reportedly involved a small issuance, with each Unit initially benchmarked near one gram of gold and allowed to fluctuate based on market movements in the underlying reserve basket. This structure resembles a digital unit of account rather than a circulating currency.

Importantly, the Unit does not replace national currencies and is not intended for consumer use. Its proposed role is limited to cross-border settlement and trade accounting.

Some reports suggest that the Unit’s settlement mechanism may be built using blockchain infrastructure, with Cardano cited as a possible network under consideration. However, there is no official confirmation from BRICS governments regarding the technology stack, governance framework, or long-term custody arrangements.

Claims that the Unit is governed by an “AI-led foundation” designed to eliminate political bias remain unverified and should be treated as aspirational rather than established fact.

Are U.S. interests at risk? 

Demand for settlement systems outside the dollar is not new, but it intensified after Western sanctions froze hundreds of billions of dollars in Russian central bank reserves in 2022. For many governments in the Global South, this episode reframed dollar exposure as not only an economic risk but a geopolitical vulnerability.

At the same time, several BRICS central banks have increased gold purchases over the past decade as part of broader reserve diversification strategies. While exact aggregate figures vary by source, the trend toward greater gold accumulation is well-documented.

Still, diversification does not equal abandonment. The U.S. dollar continues to dominate global trade, reserves, and financial markets.

BRICS countries also continue to trade heavily with the United States and dollar-based markets, reinforcing ongoing reliance on the dollar. There is no unified BRICS monetary authority, nor any serious proposal to create one, and even initiatives like BRICS Pay or expanded local-currency settlement frameworks remain long-term projects measured in years rather than months. In this context, the Unit is best understood not as a new global currency but as a proof-of-concept: a signal of growing interest among non-Western economies in reducing exposure to dollar-centric systems, using gold more actively in settlement, and experimenting with digital infrastructure for cross-border trade. 

The narrative of an imminent BRICS-led overthrow of dollar dominance is overstated. However, dismissing projects like the Unit entirely would also miss the point. What is emerging is a slow, fragmented, and experimental push toward financial pluralism, not a sudden regime change.

For now, the Unit remains a small-scale pilot — notable less for what it already is than for what it reveals about how global finance may gradually adapt in a more multipolar world.