BRICS and the XRP Ledger: Facts and Speculations

In recent periods, discussions have circulated within financial and cryptocurrency communities regarding the potential adoption of XRP or the XRP Ledger (XRPL) by BRICS nations—Brazil, Russia, India, China, and South Africa—as part of their payment infrastructure. The BRICS bloc has established core objectives centered on reducing dependence on the U.S. dollar and creating a multipolar financial system that grants greater autonomy to member states. This mission of "de-dollarization" raises critical questions about the feasibility of adopting XRP, a cryptocurrency developed by a major American fintech company. This apparent contradiction forms the crux of the debate surrounding whether BRICS will use XRP or similar technologies as part of their cryptocurrency adoption strategy.

The Appeal of XRP and XRPL

The XRP Ledger represents a significant technological innovation in cross-border payment systems. XRP has earned recognition for its exceptional efficiency and scalability characteristics, designed specifically to facilitate rapid international transfers at minimal cost. These features align remarkably well with BRICS' strategic objectives of establishing more efficient inter-nation payment mechanisms. The underlying technology, the XRP Ledger, operates as a distributed network architecture that permits multiple participants to operate nodes, enabling broader participation in the network. Theoretically, this technology presents compelling advantages for any large economic bloc seeking to modernize their payment infrastructure. The combination of speed, cost-effectiveness, and distributed governance makes XRP an ostensibly attractive option for international economic cooperation and trade settlement among BRICS member nations.

The Role of Network Architecture and Control

Despite the technological appeal of XRP, the proposition that BRICS would adopt this cryptocurrency remains highly speculative and encounters substantial obstacles. The fundamental challenge originates from the inherent contradiction between BRICS' strategic mission and XRP's origin. The BRICS bloc explicitly seeks financial independence from United States hegemony and the pervasive global dominance of the U.S. dollar in international trade and foreign reserves. Adopting a cryptocurrency created by a U.S.-based company directly contradicts this objective of liberation from dollar dependence and American financial control.

Furthermore, while the development company asserts that the XRP Ledger operates on distributed principles, widespread skepticism persists regarding this claim. The company maintains substantial ownership of a significant portion of the total XRP token supply and exercises considerable influence over ecosystem development and governance decisions. This concentrated control mechanism creates a fundamental contradiction for BRICS countries, which harbor legitimate concerns about relying on systems with pronounced ties to the United States, regardless of claims regarding decentralization.

Gold and Commodity-Backed Currency: A More Realistic Scenario

Parallel to speculation surrounding alternative cryptocurrency adoption, another hypothesis has gained considerable attention within analytical circles: the potential development of a gold and commodity-backed currency by BRICS. This scenario demonstrates significantly greater realism and coherence with BRICS' established goals of de-dollarization and economic independence. A gold-backed currency would provide a stable, predictable alternative to the U.S. dollar, eliminating the need for dollar-denominated reserves while leveraging the substantial natural resource wealth concentrated among BRICS member nations.

Member nations have undertaken strategic initiatives to increase their gold reserves substantially, lending credibility to hypotheses suggesting that the bloc actively prepares for such a monetary transition. A currency underpinned by tangible assets—including gold, petroleum, and other strategic commodities—would substantially strengthen BRICS' position within the global financial architecture. Such a currency arrangement would enable member nations to conduct international trade using a stable medium of exchange independent of Western financial influence and control mechanisms.

BRICS and Digital Currencies: The Likely Path Forward

Rather than adopting external cryptocurrencies, BRICS member nations demonstrate greater likelihood of developing proprietary digital currencies and customized payment systems that authentically reflect their broader strategic objectives. Multiple member states have already achieved substantial progress through national digital currency implementations, while others actively develop regional infrastructure. These nationally-controlled digital currencies better serve BRICS' fundamental vision of financial sovereignty and enhanced regional economic influence.

Additionally, member nations have engaged in substantive discussions concerning the creation of a shared digital currency specifically designed for intra-group commercial activities. Such a currency would facilitate further reduction of dollar dependence in regional trade while remaining tailored precisely to the collective needs and specifications of BRICS member economies. Critically, this approach eliminates reliance on external private entities, particularly those headquartered in the United States, ensuring complete sovereignty over monetary policy and financial infrastructure.

Conclusion

While XRP's cross-border payment capabilities present genuine technological merit, the hypothesis of BRICS adopting this cryptocurrency appears fundamentally improbable when examined against the bloc's stated strategic objectives. The BRICS nations, characterized by their resolute commitment to de-dollarization and financial independence, would unlikely embrace systems demonstrating substantial connections to American corporate entities. Conversely, the development of a gold and commodity-backed currency emerges as the substantially more viable pathway forward, offering coherence with BRICS' foundational goals while simultaneously augmenting their collective economic leverage within the global financial system. As the situation evolves, while alternative external cryptocurrency adoption remains speculative at best, the emergence of sovereign digital instruments and commodity-backed monetary systems represents the more probable trajectory toward establishing the bloc's envisioned new international financial architecture.

FAQ

Will the BRICS Nations use XRP?

Yes, BRICS nations are actively exploring XRP integration into a gold-backed financial system to reduce U.S. dollar dependence and bypass SWIFT. This initiative represents a significant shift toward alternative financial infrastructure.

Is XRP really going to be used by banks?

Yes. Banks are increasingly adopting XRP for real-time cross-border payments and liquidity sourcing. Ripple's growing partnerships with financial institutions demonstrate XRP's expanding utility in the banking sector.

What payment system will BRICS use?

BRICS will use BRICS Pay, a decentralized cross-border payment system designed to promote trade among member states and reduce reliance on the US dollar. It enables instant transactions in local currencies without a central authority.