The US dollar faces structural shock right now as BRICS nations are accelerating their efforts toward BRICS de-dollarization through Central Bank digital currencies and alternative payment systems. This BRICS US dollar shock comes from coordinated moves to reduce dependence on the global reserve currency, and at the time of writing, dollar reserves have dropped below 40% for the first time in about two decades or so. The US dollar faces structural shock that many experts believe represents an inflection point in global finance.
Also Read: BRICS Currency Major Update Puts Pressure on Dollar Dominance
Trump Issues Warning Against dollar Alternatives
The US dollar faces structural shock from BRICS expansion, and this has prompted some pretty sharp warnings from President Donald Trump. In July 2025, Trump made his position clear when he stated the following:
Trump stated:
“BRICS was set up to hurt us, BRICS was set up to degenerate our dollar and take our dollar . . . off as the standard.”
Trump also threatened 100% tariffs on countries pursuing BRICS de-dollarization, which signals Washington’s growing concern over the BRICS US dollar shock that’s being felt across financial markets.
Central Bank Digital Currencies Are Leading The Push
The Reserve Bank of India has recommended that Central Bank digital currencies be linked at the upcoming 2026 BRICS summit. The BRICS US dollar shock is being amplified by these digital currency initiatives, and the US dollar faces structural shock from technological innovation in finance. RBI Deputy Governor T. Rabi Sankar had this to say about the matter:
Rabi Sankar stated:
“CBDCs do not pose many of the risks associated with stablecoins.”
India’s External Affairs Minister S. Jaishankar clarified his country’s stance on the issue:
Jaishankar stated:
“I don’t think there’s any policy on our part to replace the dollar. The dollar as the reserve currency is the source of global economic stability.”
Russia and China are now settling around 90% of their bilateral trade in rubles and yuan. Russian President Vladimir Putin explained the situation:
Putin stated:
“We are not refusing, not fighting the dollar, but if they don’t let us work with it, what can we do?”
Alternative Systems Challenge Traditional Finance
BRICS countries are already experimenting with new ways of payment such as BRICS Pay and additionally the blockchain-based Unit. The New Development Bank is also looking to do approximately 30% of its lending in local currencies by 2026, further decreasing the dollar dependence.
These alternative payment systems are finding their way in the developing economies thereby exerting structural shock on the US dollar. Banks worldwide are hoarding gold rather than dollar deposits and gold is now the target of foreign exchange reserves in comparison to the euro, the yen, and the pound as a whole. This is because the increased fear is the weaponization of dollars in form of sanction especially following the Russian expulsion of SWIFT.
Also Read: Will US Dollar Collapse If BRICS Links Their CBDC Currencies?
The US dollar faces structural shock as the global reserve currency system undergoes its first major challenge since World War II. The BRICS US dollar shock is being driven by coordination on Central Bank digital currencies and alternative payment systems for BRICS de-dollarization efforts. The US dollar faces structural shock that analysts expect will reshape international finance, and many experts believe this trend will continue as more nations seek financial independence from Western-dominated systems.
