Will the US Dollar Collapse If BRICS Links Their CBDC Currencies? The 2026 Geopolitical Shockwave

Forget trade wars. The real financial frontline is digital. BRICS nations are quietly building a network of Central Bank Digital Currencies (CBDCs)—and if they link them, it could trigger the monetary shake-up Wall Street fears most.

The Digital End-Run Around SWIFT

Linking CBDCs creates a seamless, cross-border payment rail that bypasses the dollar-dominated SWIFT system entirely. Think instant settlements between Moscow and Mumbai, or São Paulo and Shanghai, without a greenback in sight. It’s not just about speed; it’s about building a financial ecosystem with its own rules, its own leverage—and its own reserve assets.

Collapse or Just a Crippling Blow?

Outright collapse? Unlikely. The dollar’s entrenched dominance is a fortress with deep moats. But a coordinated BRICS CBDC network would be a sustained artillery barrage on its walls. Global demand for dollars would slowly erode as trade de-dollarizes. The exorbitant privilege of running endless deficits? That gets a lot more expensive. The Fed’s monetary policy would suddenly have to consider a powerful external constraint it hasn't faced in decades.

The Cynical Take

Of course, this assumes BRICS can move beyond summits and signatures to actual, interoperable infrastructure—a coalition where geopolitical squabbles often trump financial pragmatism. Wall Street might be betting that inertia and infighting are the dollar's best allies. They usually are.

The bottom line: A linked BRICS CBDC network wouldn't flip the switch off on the dollar overnight. It would slowly but surely pull the plug on its unchallenged supremacy. The era of a single global reserve currency is facing its first credible, technological threat. The financial world is about to get a lot more… interesting.

What Happens To the US Dollar If BRICS Nations Link Their CBDC Currencies?

The US dollar will not collapse if BRICS nations actively begin using their CBDC currencies for trade. However, the role of the US dollar in the global financial stage will experience a rapid change. The change includes the US dollar losing some transactional dominance in cross-border transactions. Moreover, it will keep its reserve currency status dominant and still be a SAFE haven for investors.

The only change BRICS could experience using their CBDC currencies is faster settlements and cheaper exchange rates compared to the US dollar. The 10-member bloc WOULD save millions in exchange rates as they bypass the US dollar mechanism.

This would make BRICS begin using their CBDC currencies for oil and gas, and other commodities, and not the US dollar. No doubt, the US dollar will be hit, but its role in the global financial sector will be dominant. Foreign exchange reserves would face little to no corrections as the trust in the US dollar will be intact.

BRICS’ CBDC currencies will only be as strong as the financial system behind them. The US dollar boasts of a robust mechanism, and most importantly, it is easier to liquidate. That cannot be said about the CBDC currencies, as transactions would be sensitive with no hedging. Most importantly, the trust in Russia’s ruble, Chinese yuan, and India’s rupee is low. Other countries would not want to hold on to the currency as it’s difficult to liquidate when needed.