The global financial landscape is experiencing a seismic shift. BRICS nations have launched an unprecedented challenge to US dollar dominance by stockpiling gold at record levels. This accumulation of central bank gold reserves and the development of alternative payment systems could reshape international trade forever.
In 2025, BRICS nations purchased a staggering 663 metric tons of gold worth approximately $91 billion in just nine months. This buying spree didn’t slow down even as gold prices soared to all-time highs of $4,381 per ounce. Russia leads the pack with 2,336 tons in reserves, while China, India, and other members continue accumulating the precious metal with laser focus.
What makes this trend remarkable isn’t just the volume—it’s the strategy behind it. These purchases represent a calculated move away from dollar-denominated assets toward a more neutral store of value that no single nation can control or weaponize through sanctions.
The BRICS alliance has moved beyond mere talk. In late 2025, they launched a pilot program for “The Unit,” a gold-backed currency designed for settlement between member economies. This digital trade instrument consists of 40% physical gold and 60% BRICS member currencies, with daily adjustments to maintain value stability.
Built on blockchain technology, The Unit doesn’t aim to replace national currencies. Instead, it serves as a neutral settlement tool for cross-border transactions, allowing BRICS nations to trade without routing payments through Western financial systems. For countries facing sanctions or dollar volatility, this represents a lifeline to continued global commerce and links closely to their central bank gold reserves strategy.
The motivation behind this gold-backed currency strategy is multifaceted. First, de-dollarization offers protection from monetary policy decisions made thousands of miles away in Washington. When the Federal Reserve adjusts interest rates, emerging markets often experience destabilizing capital flight. Gold provides insulation from these shocks.
Second, Western sanctions against Russia following the 2022 Ukraine invasion demonstrated how quickly dollar-based assets could be frozen. This wake-up call resonated throughout the developing world, prompting nations to seek alternatives that couldn’t be seized by foreign powers.
Third, BRICS nations now represent 40% of the global population and 25% of world GDP. Their combined economic weight gives them leverage to establish alternative monetary arrangements that reflect multipolar realities rather than post-World War II power structures. In this context, the growth of central bank gold reserves plays a vital role.
Numbers tell a sobering story for dollar supremacy. The greenback’s share of global foreign exchange reserves dropped to 56.32% in 2025—its lowest level in three decades and a precipitous fall from over 70% in the early 2000s. Meanwhile, central bank gold reserves increased their portion of BRICS reserves by 102% over five years, jumping from 6.4% to 12.9%.
This isn’t a temporary blip. According to World Gold Council surveys, 73% of global central bankers predict the dollar’s reserve share will continue shrinking over the next five years. The trend lines are clear, and they’re pointing away from dollar dominance.
The alliance has grown from its original five members to ten full members in 2025, including energy-rich nations like the UAE and Iran. Egypt, Ethiopia, and Indonesia have joined, while thirteen additional countries signed on as partner nations. This expansion transforms BRICS from a talking shop into a genuine economic bloc with the infrastructure to challenge existing financial systems.
They’re not just buying gold—they’re building alternative institutions. BRICS Pay, a decentralized payment messaging system, facilitates transactions in local currencies. The New Development Bank provides financing without Western conditions. These parallel structures reduce dependence on institutions like the IMF and World Bank, closely tied to strategies involving central bank gold reserves.
Financial analysts predict gold could reach $5,000 per ounce by 2026, driven partly by relentless BRICS demand. Goldman Sachs and JPMorgan have issued bullish forecasts reflecting this new reality of central bank gold reserves as geopolitical hedges.
The emergence of a gold-backed currency backed by major economies represents more than economic policy—it signals the transition toward a multipolar financial world. Whether The Unit succeeds or fails, the genie is out of the bottle. BRICS nations have demonstrated both capability and will to build alternatives to dollar-based systems.
For decades, US dollar dominance seemed unassailable. Today, that assumption looks increasingly questionable as BRICS nations pursue de-dollarization through gold accumulation and innovative monetary technology involving central banks. The global finance power grab isn’t coming—it’s already here.
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