Rewrite Brazil Explores Crypto Integration in BRICS Trade Strategy
For over a decade, BRICS nations—including Brazil, Russia, India, China, and South Africa—have been striving to reduce their reliance on the U.S. dollar in international trade and reserve holdings. Now, as the bloc expands to include countries like Saudi Arabia, Egypt, the UAE, Ethiopia, and Indonesia, there are growing discussions about adopting blockchain-based financial systems to further this goal.
One digital asset attracting attention is Ripple’s XRP. Purpose-built for rapid, low-cost, cross-border payments, XRP could play a strategic role in a new financial ecosystem that supports seamless international transactions without the need for centralized intermediaries.
Potential for a Gold-Backed Crypto System
Speculation is mounting that BRICS may explore using XRP to support a gold-backed settlement system aimed at counteracting the dollar’s dominance. This concept builds on earlier discussions from 2023, when financial circles linked to the BRICS group began evaluating the XRP Ledger (XRPL) and its escrow functions for secure, timed asset transfers. Although concrete plans were not confirmed at the time, the idea has regained traction as member nations seek innovative blockchain solutions to modernize financial interactions.
Unlike Bitcoin, which often experiences high volatility, or Ethereum, known for transaction congestion and fees, XRP offers speed, scalability, and cost-efficiency. Its unique ability to serve as a “bridge currency” helps eliminate the need for pre-funded accounts and streamlines cross-border settlements, potentially enabling near-instantaneous global transactions.
Even if XRP itself isn’t formally adopted, its underlying technology could serve as a blueprint for BRICS members aiming to create a digitized and autonomous financial infrastructure.
Challenging SWIFT and Building Alternatives
The global SWIFT system, headquartered in Belgium, is still the dominant infrastructure for cross-border bank payments. However, for BRICS nations, it’s increasingly being viewed as a geopolitical tool used by Western powers to exert control. This concern became a reality for Russia in 2022 when it faced partial exclusion from SWIFT, dramatically limiting its international financial operations.
Beyond its political vulnerabilities, SWIFT’s technical inefficiencies are also a problem. It only transmits payment instructions, not the funds themselves—transactions can take days to complete due to intermediary banks, manual compliance checks, and time zones. Each step also incurs additional costs, making the system inefficient for emerging economies eager to accelerate trade.
In response, BRICS countries have been developing their own financial infrastructures. Russia operates the SPFS system, China has CIPS, and India is enhancing its UPI network for international payments. These alternatives aim to maintain uninterrupted cross-border transaction flows even in the event of future SWIFT disconnections.
Next Steps: BRICS Summit in Rio
The future of a BRICS-based payment system is expected to be a major topic at the upcoming 17th BRICS Summit in Rio de Janeiro on July 6–7, 2025. As the current chair, Brazil aims to promote closer collaboration among Global South nations and push for comprehensive reforms in global financial systems.
As of the latest data, XRP is trading at $2.43—an increase of 2.17% over the past week—reflecting its growing relevance in ongoing international finance conversations.
In sum, while definite decisions remain unannounced, the growing interest in XRP and blockchain within BRICS signals a broader movement toward a more decentralized, efficient, and politically autonomous global financial architecture.
Ripple’s technology and XRP’s utility
In the ever-evolving landscape of global finance, Ripple’s XRP stands out as a digital asset purpose-built for real-world utility—especially in the realm of cross-border payments. Unlike many other cryptocurrencies that focus on decentralization for its own sake or speculative trading, XRP was engineered with a mission: to make international money transfers faster, cheaper, and more efficient. And as BRICS nations explore alternatives to the traditional Western-dominated financial system, XRP’s core strengths are suddenly in the spotlight.
At the heart of Ripple’s ecosystem is the XRP Ledger (XRPL), an open-source, decentralized blockchain that processes transactions in 3 to 5 seconds. The ledger can handle up to 1,500 transactions per second (TPS)—a far cry from Bitcoin’s 7 TPS or Ethereum’s 15–30 TPS under normal load. This scalability makes XRP uniquely suited for high-frequency, high-volume financial environments, including those envisioned by BRICS for a new global payments framework.
Key features that make XRP technologically appealing include:
- Speed: Settlement finality in seconds, enabling near-instant global transactions.
- Low cost: Average transaction fees are fractions of a penny—ideal for both micro and macro payments.
- Liquidity bridge: XRP acts as a neutral bridge currency, eliminating the need for pre-funded nostro/vostro accounts in cross-border transactions.
- Energy efficiency: Unlike proof-of-work coins like Bitcoin, XRP uses a consensus algorithm that is lightweight and eco-friendly.
- Built-in escrow and smart contract support: Facilitates programmable money and conditional transfers, useful for trade agreements and settlement layers.
RippleNet, Ripple’s enterprise-grade payment network, leverages the power of the XRPL to connect financial institutions worldwide. It’s already being used by banks and payment providers across more than 55 countries. The On-Demand Liquidity (ODL) feature, which uses XRP as a bridge asset, allows institutions to move money globally without needing to hold local currency in advance—a game-changer for nations seeking autonomy from the dollar-based SWIFT system.
For BRICS nations, this technology could solve multiple pain points:
- Reduce dependency on U.S.-centric financial rails
- Enable real-time settlement of trade balances among member states
- Facilitate a tokenized gold-backed system with programmable interoperability
- Lower transaction costs for developing economies
From an investment standpoint, XRP’s utility-driven design offers a compelling narrative. While many altcoins are still searching for a killer use case, XRP’s integration into cross-border finance gives it a tangible foothold in trillion-dollar markets. As such, the token is increasingly being viewed not just as a speculative asset, but as a foundational layer in the next evolution of international finance.
So, could XRP be the digital lubricant that keeps the new BRICS financial engine running smoothly? The tech certainly checks all the boxes. And as geopolitical tensions and economic realignments accelerate, utility-focused assets like XRP are well-positioned to benefit from the global shift toward decentralized, blockchain-powered trade infrastructure.
BRICS’ vision for a gold-backed financial system
As the BRICS alliance accelerates its push to create a multipolar world order, one bold idea has steadily gained traction: launching a gold-backed digital currency to rival the U.S. dollar in global trade. The concept isn’t just about symbolism—it’s rooted in economic pragmatism. With inflationary pressures, rising debt levels in Western economies, and a growing desire for financial sovereignty, BRICS nations are exploring ways to anchor their monetary future in something more tangible than fiat: gold.
This vision isn’t entirely new. For years, gold has been seen as the ultimate hedge against currency devaluation and geopolitical turbulence. But combining it with blockchain technology? That’s where things get interesting.
The idea is to issue a digital currency backed by physical gold reserves held by member states—stored in secure vaults and audited transparently. This tokenized gold could then be used for settling international trade among BRICS countries, bypassing the dollar and avoiding the frictions of traditional banking networks. The blockchain layer would ensure traceability, immutability, and near-instantaneous settlement—features that legacy systems like SWIFT can’t match.
Brazil, currently chairing the 2025 BRICS Summit, has emerged as a key proponent of this initiative. According to sources close to the Brazilian Ministry of Finance, the country is actively studying digital asset frameworks and has held exploratory talks with blockchain firms. Ripple, with its enterprise-grade infrastructure and compliance-ready tech stack, is reportedly one of the platforms under consideration.
Why gold? Because it’s universally accepted, politically neutral, and has intrinsic value. Why blockchain? Because it ensures transparency, speed, and interoperability. Together, this fusion represents a powerful alternative to fiat-based global trade.
Here’s how a gold-backed BRICS digital currency could work in practice:
- Token issuance: Member states tokenize their national gold reserves into a unified digital currency.
- Smart contracts: Enable conditional trade agreements, automating payments upon delivery of goods or services.
- Cross-border settlement: XRP or similar digital assets could serve as a liquidity bridge between different national currencies and the gold token.
- KYC/AML compliance: Built-in identity layers ensure regulatory adherence without compromising decentralization.
- Reserve audits: Blockchain-based proof-of-reserve systems ensure that each token is fully backed by physical gold.
While the full-scale implementation of such a system remains in development, pilot programs and bilateral trade agreements are already in motion. For instance, Russia and China have increased their gold reserves significantly in recent years, and India has begun testing blockchain-based settlement mechanisms through its central bank digital currency (CBDC) framework.
From a strategic standpoint, a gold-backed system could give BRICS nations a robust hedge against dollar volatility and weaponized sanctions. It would also allow member states to conduct trade based on real assets rather than debt-based currencies—restoring a level of financial discipline often missing in today’s fiat landscape.
And here’s where XRP could slide in as the perfect facilitator. The token’s ability to serve as a bridge asset between disparate currencies makes it a prime candidate to underpin liquidity in this new paradigm. Even if BRICS opts to build its own blockchain, the XRPL’s architecture offers a model worth emulating—especially its escrow and decentralized exchange features, which could support atomic swaps between gold tokens and national currencies.
The implications for investors are profound. A successful gold-backed BRICS currency—especially one that operates on or integrates with XRP—could ignite a surge in demand for the token, driving price appreciation and institutional interest. It would also validate Ripple’s long-standing thesis that utility, not hype, will determine long-term value in the digital asset space.
And let’s be honest: a gold-backed, blockchain-powered financial system sounds like something straight out of a futurist’s playbook. But with BRICS moving swiftly and XRP already embedded in the infrastructure of modern finance, that future may be closer than we think.
Speculation around XRP’s role in BRICS settlements
As whispers grow louder around BRICS’ ambitions to reshape the global financial order, XRP has found itself in the eye of the speculative storm. The token’s technical prowess is undeniable—but will it actually become the backbone of BRICS’ gold-backed settlement system? That’s the billion-dollar question captivating crypto investors, policymakers, and financial analysts alike.
While BRICS leaders have yet to officially name XRP in any formal declaration, the digital asset’s architecture aligns so well with the alliance’s goals that it’s hard to ignore. Analysts point not only to XRP’s lightning-fast settlement speed and minimal transaction costs but also to its interoperability with legacy financial systems and emerging blockchain frameworks. In fact, Ripple’s On-Demand Liquidity (ODL) solution has already been integrated by financial institutions in over 50 countries—proof that real-world adoption is more than just a buzzword.
But what really fuels the XRP-BRICS narrative is the convergence of geopolitical strategy and technological capability. As BRICS tightens its economic ties and seeks alternatives to SWIFT and dollar-dominated trade, XRP stands out as a ready-made bridge asset that could facilitate instant settlements across a decentralized, gold-pegged network.
Let’s break down why XRP is being floated as a potential linchpin in this evolving ecosystem:
- Liquidity on demand: XRP can be sourced and settled in real time, reducing the need for member nations to hold large reserves in foreign currencies.
- Neutrality: Unlike national currencies, XRP is not tied to any one country, which makes it politically palatable for a bloc that values sovereignty and balance.
- Programmability: Smart contract support on the XRPL could enable automated trade settlements, customs clearance, and even tax compliance in multi-country deals.
- Escrow capabilities: BRICS could use XRP’s built-in escrow features to lock funds until specific trade conditions are met—perfect for high-value commodity exchanges like oil or gold.
Brazil’s recent interest in blockchain integration adds more fuel to the fire. According to local reports, Brazilian financial regulators have been in discussions with several blockchain firms, including Ripple, as they explore frameworks for cross-border digital settlements. The country’s central bank has also been testing its own CBDC, called DREX, which could potentially interoperate with XRP or similar liquidity assets.
Meanwhile, Ripple has not been shy about its ambition to work with governments and central banks. In fact, the company has launched multiple pilot programs with monetary authorities worldwide, including projects involving stablecoins and CBDCs. If BRICS decides to use XRP as a liquidity layer beneath its gold-backed token, Ripple could be the bridge between traditional finance and the new multipolar monetary system.
Of course, skeptics argue that BRICS is more likely to develop its own proprietary blockchain infrastructure. However, even in that scenario, Ripple’s technology could serve as a model—if not the foundation—for the system’s architecture. Think less “XRP or nothing” and more “XRP-inspired.” And for investors, that distinction may not matter much if the result is increased utility and demand for the token.
It’s also worth noting that Ripple’s legal clarity—especially following its partial victory over the U.S. SEC in 2023—has increased its legitimacy as a cross-border settlement tool. This regulatory momentum could make XRP a safer bet for BRICS countries wary of U.S. jurisdictional overreach.
Market watchers are already responding to the narrative. XRP’s trading volume has spiked periodically alongside news of BRICS meetings, and social media speculation often drives short-term price surges. But beyond the hype, institutional investors are beginning to consider XRP not just as a speculative asset, but as a potential infrastructure token underpinning a new era of decentralized international trade.
In this context, XRP becomes more than just a cryptocurrency—it becomes a geopolitical instrument. One that could redefine how nations settle debts, manage reserves, and assert economic independence in a rapidly changing world. Whether it’s officially adopted or simply emulated, XRP’s role in the BRICS financial experiment is one to watch closely.
Market reactions and future implications
The mere possibility of XRP playing a central role in the BRICS gold-backed payment system has already stirred considerable excitement—and volatility—within the crypto markets. XRP’s price action has become increasingly sensitive to geopolitical developments, with traders and institutional investors alike keeping a close eye on BRICS announcements, central bank statements, and Ripple’s strategic partnerships.
In recent months, XRP has seen a noticeable uptick in trading volume and investor interest, especially during key BRICS-related events. When Brazil’s central bank hinted at exploring blockchain-based cross-border solutions, XRP surged nearly 12% in a single week. Similarly, speculation around the 2025 BRICS Summit in Rio has injected fresh momentum into XRP’s long-term investment narrative.
But don’t mistake this for short-term hype. There’s a growing sense that XRP is evolving from a speculative altcoin into a legitimate infrastructure asset. Institutional players are starting to view the token as a strategic hedge against the fragmentation of global finance. If BRICS successfully launches a decentralized, gold-backed financial system—whether using XRP or a Ripple-inspired model—it could catalyze a wave of adoption across emerging markets seeking alternatives to dollar dependency.
Here are some key market implications to watch:
- Increased institutional exposure: As Ripple continues to partner with central banks and financial regulators, asset managers may begin allocating XRP as part of diversified exposure to blockchain-based infrastructure plays.
- Elevated token demand: If XRP is used to facilitate liquidity in BRICS trade settlements, demand for the token could rise significantly—particularly among commercial banks and payment providers operating in the Global South.
- Price volatility tied to geopolitics: Expect XRP’s price to respond to geopolitical catalysts, such as BRICS summits, sanctions, or international trade agreements. This creates both risk and opportunity for savvy crypto traders.
- RippleNet expansion: Ripple’s enterprise network could see accelerated growth as more nations and institutions seek to integrate blockchain-based solutions into their cross-border financial operations.
From an investor’s perspective, XRP now occupies a unique position in the crypto landscape. It’s one of the few tokens with real-world utility, regulatory traction, and a plausible role in the reconfiguration of global finance. While Bitcoin is often seen as digital gold and Ethereum as the programmable internet, XRP is quietly carving out its niche as the digital plumbing of international settlements.
Looking ahead, Ripple’s ongoing dialogues with central banks, combined with the BRICS nations’ appetite for innovation, could lead to pilot implementations or hybrid models that incorporate XRP’s liquidity mechanics. Even if XRP isn’t officially designated as the BRICS bridge asset, its role as a reference model or “middleware” layer could still drive significant value appreciation and adoption across financial institutions.
Let’s not forget the ripple effect (pun intended) this could have on the broader blockchain ecosystem. A successful BRICS-backed digital currency anchored in real assets and powered by blockchain would validate the utility thesis for crypto—paving the way for a new era of programmable, sovereign, and decentralized finance.
In short, XRP’s future may be tied not just to market cycles, but to tectonic geopolitical shifts. For investors betting on the intersection of finance, technology, and international diplomacy, XRP is no longer just a coin—it’s a strategic asset riding the wave of global monetary transformation.