Putin Proposes BRICS-Only Settlement System to Digitally Break Dollar Dependence

Russian President Vladimir Putin has called on BRICS nations to establish a dedicated independent settlement and depository system that operates using their national currencies, in a major push to insulate member economies from geopolitical risks and reduce dependence on the US dollar.

A Push for De-Dollarisation

Addressing fellow leaders during the BRICS Summit, Putin revealed that over 90% of Russia’s trade with BRICS countries in 2024 was already conducted in national currencies. He proposed that this growing trend be institutionalized through a formal BRICS-led financial infrastructure, aimed at bypassing Western-controlled systems and strengthening intra-BRICS financial sovereignty.

Design of the Proposed System

The proposed platform would enable member states to settle transactions in local currencies, utilizing digital messaging systems akin to national alternatives such as Russia’s SPFS, China’s CIPS, and India’s SFMS. Putin suggested that the initiative could build upon or complement efforts like BRICS Pay and BRICS Clear, focusing on faster, secure, and transparent settlements.

Investment Integration Through NDB

In addition to payment systems, Putin called for the creation of a BRICS investment platform, anchored by the New Development Bank, to facilitate intra-bloc capital flows. This would streamline funding for infrastructure and technology projects across member states, promoting economic self-reliance and reducing exposure to international credit risks.

Long-Term Vision, Immediate Challenges

While Putin reiterated support for de-dollarisation, he also cautioned that a common BRICS currency was not an immediate goal. Instead, member nations would need to focus on regulatory harmonization, technology standardization, and political coordination to bring the independent system to fruition.

The idea echoes past attempts to develop alternatives to SWIFT, the US-dominated global messaging system, by leveraging homegrown platforms. The collective aim is to create a multipolar global financial architecture that better reflects the growing economic weight of emerging markets.

Putin’s proposal aligns with broader BRICS efforts to redefine global finance, and its implementation could have wide-reaching implications for trade, investment, and currency geopolitics in the years ahead.