BRICS Common Currency ‘UNIT’ Poses Challenge to US Dollar Dominance
According to the Economic Desk of Webangah News Agency, the newly unveiled R5 banknote – featuring national flags and multilingual text honoring the currencies of core BRICS members (Brazil, Russia, India, China, and South Africa) – signals the group’s growing ambition to create alternatives to the Western-dominated financial system. Concrete steps are now underway to transform this symbolism into reality, with December 2025 seeing intensified speculation about UNIT, a proposed blockchain-based settlement currency.
Designed by the International Reserve and Investment Assets System, UNIT will be backed by a fixed reserve basket comprising 40% gold (by weight) and 60% BRICS+ currencies. This composition aims to create a stable asset that mitigates vulnerability to financial volatility while building user confidence through blockchain transparency. The digital platform will facilitate wholesale and cross-border transactions in an increasingly multipolar financial landscape.
The initiative gains significance from BRICS+’ expanding geopolitical weight. Originally formed in September 2006 by Brazil, Russia, India and China (with South Africa joining in December 2010), the bloc added Egypt, Ethiopia, Iran, Saudi Arabia, and UAE in 2024, followed by Indonesia in 2025. Collectively, these nations now represent 36% of global landmass, 48.5% of world population, and 39% of GDP (PPP), alongside controlling 78.2% of coal production, 36% of natural gas output, and 72% of rare earth mineral reserves.
Financial analyst Vince Lanchy notes UNIT won’t function as everyday currency nor be controlled by any single nation, but rather as a settlement instrument specifically designed to reduce the bloc’s dependence on USD, euro, or yen. By eliminating USD conversion needs, it could lower transaction costs while increasing financial interdependence among members – potentially insulating them from Western economic shocks, such as those potentially arising from an AI bubble burst.
Should UNIT gain traction, it may erode the dollar’s reserve currency status, possibly reducing investments in US Treasury securities. This prospect is attracting interest from Global South nations considering BRICS+ membership. As a former White House economist observed, the bloc’s collective GDP now surpasses not only America’s dominance but the entire G7’s economic weight.
While the US dollar index fell 8% in 2025 and BRICS+ nations hold 6,143 tons of gold (versus America’s 8,134 tons), UNIT’s success hinges on establishing robust governance frameworks. Progress includes ongoing development of BRICS Pay and the potential issuance role for the New Development Bank.
