The Hidden Threat No One’s Talking About: How BRICS Could Break the U.S. Dollar

BRICS — the alliance of Brazil, Russia, India, China, and South Africa — is emerging as a serious economic and geopolitical threat to the United States, and American policymakers cannot afford to take this development lightly. Initially formed as a group of rising economies, BRICS has evolved into a strategic platform challenging the U.S.-led global order. With growing calls within the bloc to depolarize trade and develop alternative financial systems, the group directly threatens the supremacy of the U.S. dollar — the foundation of America’s economic strength and global influence. One of the most pressing concerns is BRICS’ effort to establish a new reserve currency backed by gold or a basket of member-nation currencies. If successful, this could significantly reduce global dependence on the dollar. Currently, the dollar’s dominance allows the U.S. to borrow cheaply, enforce sanctions, and project power globally without direct military intervention. If BRICS manages to convince more countries — especially in the Global South — to settle trade in local currencies or a BRICS alternative, it could weaken demand for the dollar, leading to inflation, higher interest rates, and economic instability at home. Moreover, the expansion of BRICS — with countries like Saudi Arabia, Iran, Egypt, and Argentina showing interest — is shifting the balance of global trade. With control over vast reserves of oil, gas, rare earth minerals, and agricultural exports, the bloc could create exclusive trade networks that bypass Western systems. This could marginalize U.S. influence in critical regions such as the Middle East, Africa, and parts of Asia, allowing BRICS to set new trade rules, infrastructure standards, and even digital currency norms. Geopolitically, BRICS challenges U.S. dominance by offering an alternative to Western institutions like the IMF and World Bank. Countries frustrated with U.S. foreign policy and conditional lending are increasingly aligning with BRICS for more favorable terms and political autonomy. The group’s message of a multipolar world resonates in an era of rising anti-Western sentiment. Ignoring BRICS would be a strategic blunder. The U.S. must respond proactively by strengthening alliances, modernizing its financial infrastructure, and reasserting leadership in global forums. America’s global standing is not guaranteed — and as BRICS gains momentum, the U.S. must adapt or risk being sidelined in the very international order it helped build.