BRICS countries are reportedly advancing work on a new form of currency, with the initiative expected to be discussed at the next BRICS leaders’ summit, according to remarks from Russian State Duma Deputy Chairman Alexander Babakov. Speaking on the sidelines of the India-Russia Business Forum in New Delhi, Babakov said the bloc’s move toward settlement in national currencies is only the first phase, and that the next step could involve the circulation of a digital or otherwise fundamentally new currency in the near future.
His comments suggest that BRICS policymakers are framing monetary cooperation as a staged process: first reducing reliance on external reserve currencies in trade settlement, then exploring an alternative unit or system that could support broader economic coordination among member states. Babakov said work is already underway and indicated that the bloc may announce its readiness to move the project forward at the upcoming summit, which is set to be hosted by South Africa in August.
Local-Currency Settlement as the Starting Point
The BRICS grouping currently includes Brazil, Russia, India, China, and South Africa. In recent years, the bloc has increasingly been associated with efforts to expand trade settlement in local currencies, particularly as member countries seek to diversify away from heavy dependence on the U.S. dollar. Babakov’s remarks place those existing efforts within a broader strategic framework, in which national-currency settlement is treated as a precursor to a more ambitious monetary arrangement.
According to the report, local-currency trade among BRICS members has already begun to gain traction. One recent example cited was an agreement between Russian President Vladimir Putin and Chinese President Xi Jinping to use the Chinese yuan as a settlement currency in dealings with emerging economies. China has also signed a bilateral agreement with Brazil aimed at facilitating trade using the two countries’ own national currencies rather than routing transactions through the dollar.
These developments are significant because they demonstrate that BRICS monetary coordination is not being discussed only in abstract terms. Instead, parts of the bloc are already implementing mechanisms that reduce dependence on traditional Western-dominated settlement structures. Babakov’s comments imply that a new BRICS currency concept, if it develops further, would build on this practical foundation rather than emerge in isolation.
What Kind of Currency Is Being Discussed?
Babakov did not provide a full technical blueprint for the proposed currency, but his remarks left open multiple possibilities. He referred to the potential circulation of a digital currency or another fundamentally new monetary form. He also did not rule out the emergence of a unified BRICS currency in the future.
One of the more notable elements in the report is the suggestion that such a currency could be backed by gold and other commodities, including rare-earth elements or even land. That idea reflects a recurring theme in discussions around alternative monetary architecture: that credibility and stability might be enhanced by linking a new unit of account or settlement medium to tangible assets rather than relying solely on fiat issuance.
At the same time, the report offers no details on governance, convertibility, issuance design, institutional oversight, reserve composition, or legal architecture. There is also no indication of whether the proposed currency would function as a trade-settlement instrument, a reserve asset, a digital payment rail, or a full-fledged common currency. For now, the initiative remains at the level of political signaling and strategic intent rather than an operationally defined project.
Expansion Interest Adds to the Bloc’s Weight
The report also notes that several countries have expressed interest in joining BRICS, including Argentina, Iran, Indonesia, Turkey, Saudi Arabia, and Egypt. While no expansion outcome was specified in the source material, the interest itself is relevant. A larger BRICS framework would increase the economic and geopolitical significance of any future payment or currency initiative developed under the bloc’s umbrella.
If more countries were eventually integrated into BRICS-led settlement systems, the practical value of a shared payments mechanism or common unit could rise. That said, broader membership would also likely make consensus more difficult, especially on issues such as reserve backing, governance rights, monetary discipline, and interoperability with domestic financial systems.
The current report does not state that these questions have been resolved. Instead, it underscores that work is ongoing and that the bloc may use the leaders’ summit as a venue to signal the project’s level of readiness.
Russia Pushes a Multipolar Monetary Narrative
At the India-Russia Business Forum, Babakov also argued that India and Russia should establish a new economic association supported by a shared currency, while suggesting that China could play a crucial role in developing a common monetary framework for the three countries. In his remarks, New Delhi, Beijing, and Moscow were described as countries helping shape a multipolar world endorsed by many governments.
He said the monetary relationships of the future should not be designed to defend the U.S. dollar or the euro, but instead should support new shared objectives. This framing places the BRICS currency discussion squarely within a wider geopolitical narrative—one centered on reducing Western monetary influence and building alternative channels for trade, reserves, and financial coordination.
Babakov also criticized the role of the dollar and euro, arguing that they primarily serve the interests of Washington and London rather than the broader global community. He further suggested that existing monetary structures do not treat Russia, India, and China as equal counterparts. These remarks align with the broader de-dollarization discourse that has become more prominent in international policy debates, especially among countries seeking greater autonomy in cross-border finance.
Why Markets Are Watching Closely
Even though the report does not confirm the launch of any BRICS currency, the idea is attracting attention because it touches on several major themes at once: de-dollarization, digital currency development, commodity backing, and the restructuring of global trade settlement. Any credible move by a large economic bloc toward an alternative settlement architecture could have implications for foreign exchange markets, reserve management, commodities pricing, and cross-border payment systems.
Still, it is important to separate political ambition from implementation. Designing a common or shared currency across economically diverse countries would require agreement on reserve assets, governance, liquidity support, issuance rules, and institutional accountability. It would also require reconciling very different domestic monetary priorities. None of those details were addressed in the source report.
For now, the most concrete takeaway is that BRICS officials are continuing to explore alternatives beyond local-currency settlement and are publicly signaling openness to a new monetary instrument. Whether that eventually becomes a digital settlement token, a commodity-backed accounting unit, or a broader common currency remains uncertain.
Until more specifics emerge, the initiative should be viewed as an evolving policy discussion rather than a finalized monetary project. Even so, Babakov’s comments indicate that BRICS leaders may use their next summit to clarify how far the bloc is prepared to go in building a new currency framework outside the traditional dollar- and euro-centered system.