The US dollar has long been the linchpin of global finance and trade. Its dominance, amplified by Washington’s ability to impose sanctions and control payment networks, has granted significant geopolitical leverage. However, this long-standing monopoly is now facing formidable challenges, with emerging economies actively seeking alternatives. Accelerated by discussions around de-dollarisation within the BRICS bloc and the strategic moves by nations like India and China, the global financial landscape is undergoing a significant transformation.
China’s Digital Renminbi (e-CNY) is at the forefront of this shift. The People’s Bank of China announced in October 2025 its intention to support cross-border settlements via the e-CNY with ten ASEAN nations and six Middle Eastern countries. This initiative links a substantial portion of global trade volume directly to China’s blockchain-based financial infrastructure, effectively bypassing the traditional SWIFT system that underpins dollar-denominated payments. Pilot programs, like the “Digital Currency Bridge” (mBridge) involving Hong Kong, the UAE, and Thailand, have demonstrated remarkable efficiency, achieving cross-border settlements in mere seconds with drastically reduced fees. This offers a compelling alternative for nations seeking monetary sovereignty and protection from potential US sanctions.
This move by Beijing is more than just technological advancement; it’s a calculated geopolitical strategy. The growing adoption of the yuan for intra-BRICS trade and increasing openness from Middle Eastern exporters to settle oil and gas transactions in RMB highlight a clear intent to challenge the dollar’s core pillars: oil trade, SWIFT, and dollar reserves. By offering a faster, cheaper, and sanction-resistant financial infrastructure, China is actively constructing a parallel financial world.
Emerging economies are increasingly drawn to Central Bank Digital Currencies (CBDCs) as a viable third option for international transactions, moving beyond the slow, politically charged SWIFT system or the volatile world of cryptocurrencies. CBDCs, like China’s e-CNY, offer speed, security, and regulatory compliance, making them an attractive proposition for nations aiming for both financial inclusion and geopolitical autonomy. The success of the e-CNY at scale is sparking interest across Africa, Latin America, and Asia.
India is also forging its own digital currency path with the digital rupee (eRs). Developed by the Reserve Bank of India, the eRs aims for an open, inclusive, and multipolar model with features like offline transaction capabilities and interoperability with existing payment systems like UPI. India’s strategy emphasizes building parallel digital corridors to facilitate South-South trade and offers a neutral reserve option within BRICS+, providing a trust-based alternative.
The BRICS nations are no longer just talking about de-dollarisation; they are building the infrastructure for it. With significant collective GDP and oil production, they possess the economic scale to sustain alternative settlement ecosystems. The future likely involves inter-CBDC interoperability, allowing different digital currencies to transact seamlessly. While the US dollar remains dominant, its hegemonic reign is gradually eroding, paving the way for a more multipolar financial system driven by innovation and connectivity.
