De-Dollarization 2025: Why BRICS Are Choosing Crypto Over the Dollar
For several decades, BRICS and other nations have relied on the U.S. dollar for international trade. However, this trend has undergone a paradigm shift in recent years, as many countries have sought to reduce their dependence on the U.S. dollar—a process commonly referred to as de-dollarization.
Amid this shift, digital assets such as cryptocurrencies and central bank digital currencies (CBDCs) are emerging as strategic alternatives for cross-border payments and global finance. Notably, this movement is evident among BRICS (Brazil, Russia, India, China, and South Africa) and other emerging markets as they turn to digital assets to bypass dollar-based systems.
The Rise of De-Dollarization in Global Trade
BRICS nations have been vocal about reforming international financial institutions and reducing the dominance of the U.S. dollar. One of the motivations behind this trend is geopolitical tension. U.S. sanctions have pushed countries such as Iran and Russia to seek alternatives to the dollar. These nations are now prioritizing monetary sovereignty and economic independence, moving away from overreliance on U.S. monetary policy.
As of 2025, the share of global reserves held in U.S. dollars has declined to 57%, down from over 70% in the early 2000s, according to the IMF. At the same time, BRICS nations now account for over 31% of global GDP (measured by PPP), surpassing the G7 bloc.
Dr. Claudia Neumann, a geopolitical economist and senior fellow at the University of Zurich’s Center for Global Economic Policy, notes: "The BRICS alliance is no longer a fringe coalition—it’s a credible economic force that is redefining the global balance of power. Digital currencies provide a natural extension of this sovereignty-driven agenda."
How Digital Assets Support De-Dollarization
To reduce reliance on the U.S. dollar in international transactions, countries are now turning to digital currencies and blockchain-based assets. Two primary types of digital assets have proven to be effective: central bank digital currencies (CBDCs) and decentralized cryptocurrencies.
CBDCs help promote local currencies by making domestic payment systems more efficient, secure, and interoperable. As of 2025, more than 130 countries—representing 98% of global GDP—are exploring CBDC initiatives, and at least 20 nations have launched active pilot programs or fully deployed digital currencies.
Meanwhile, cryptocurrencies such as Bitcoin and Ethereum are widely used in nations with limited access to global banking systems or under economic sanctions. In 2025, global crypto transaction volume exceeded $24 trillion, with developing economies contributing significantly. Stablecoins like USDT and USDC play a key role in facilitating cross-border payments, reaching over $150 billion in daily volume. That said, if you are new to digital assets, you need to familiarize yourself with them first, and here you can gain a better understanding of what are crypto.
"Digital assets are becoming indispensable in regions with underdeveloped financial systems or limited access to global banking," explains Lara Kim, Chief Strategy Officer at GlobalChain Analytics. "Stablecoins, in particular, are offering a fast, transparent, and politically neutral alternative to the dollar."
Crypto and CBDCs: The Future of International Trade
The convergence of de-dollarization and digital currencies is reshaping how countries define monetary policy and economic cooperation. The BRICS bloc is poised to expand, with countries like Iran, Saudi Arabia, and Egypt expressing interest in joining the coalition.
A multi-currency trade system supported by CBDCs and regionally backed stablecoins is increasingly feasible. For example, Russia and China have already settled bilateral trade in local currencies, bypassing the dollar. India is piloting cross-border transactions using the digital rupee, highlighting the shift toward decentralized financial infrastructure.
Dr. Wei Liang, professor at Renmin University’s Institute of International Finance, states: "This is not a rebellion against the dollar, but a rational adaptation to a multipolar world. Nations want choice, and digital finance provides the infrastructure for that choice."
Conclusion: Digital Finance and Global De-Dollarization
De-dollarization is gaining momentum, and digital currencies are emerging as the primary tools driving this transformation. As BRICS and other developing economies explore CBDCs and digital assets, they are shaping a new global financial architecture—more decentralized, inclusive, and resistant to political influence.
In 2025, digital assets are not just speculative instruments—they are strategic tools for achieving monetary independence and reshaping global trade. For nations looking to diversify their reserves, reduce risk, and enhance economic sovereignty, integrating digital assets into their financial ecosystems is becoming an essential step.
