In recent weeks, rumors have been swirling within the financial and crypto communities that BRICS nations—Brazil, Russia, India, China, and South Africa—are considering adopting XRP or the XRP Ledger (XRPL) as part of their payment infrastructure. For those unfamiliar with BRICS, one of the bloc's core objectives is reducing dependence on the U.S. dollar and creating a multipolar financial system that allows greater autonomy for member states. Given this goal of “de-dollarization,” many are questioning the validity of the idea that BRICS would use XRP, a cryptocurrency closely tied to an American company, Ripple Labs.

The Appeal of XRP and XRPL

XRP and its underlying technology, the XRP Ledger, have been praised for their efficiency and scalability. XRP is designed to facilitate fast, low-cost cross-border payments, which aligns well with BRICS’ ambitions of creating more efficient inter-nation payment mechanisms. The XRP Ledger operates as a decentralized network that allows anyone to run a node, and it has been marketed as a solution for international transfers—areas where the BRICS countries aim to make an impact. In theory, these features make XRP an attractive option for BRICS or any large economic bloc looking to modernize their payment systems.

The Role of Decentralization

However, the idea of BRICS adopting XRP is speculative at best and faces several hurdles. A central argument against the idea lies in the nature of BRICS' mission. The bloc seeks financial independence from the United States and the global dominance of the U.S. dollar in trade and reserves. If BRICS aims to free itself from dollar dependence, it’s difficult to imagine them turning to a cryptocurrency created by a U.S.-based company—Ripple Labs.

While Ripple claims that the XRP Ledger is decentralized, there is still a widespread perception that Ripple holds significant control over XRP due to its ownership of a large portion of the total XRP supply and its influence over the ecosystem. This would create a contradiction for BRICS countries, which are wary of relying on a system with strong ties to the U.S., no matter how decentralized it claims to be.

Gold and Commodity-Backed Currency: A More Realistic Scenario

Alongside the speculation around XRP, another rumor that has gained traction is the idea that BRICS could soon unveil a gold and commodity-backed currency. This scenario seems more realistic and aligns closely with BRICS' goals of de-dollarization and economic independence. A gold-backed currency would provide a stable alternative to the U.S. dollar, and it would allow BRICS countries to leverage their vast reserves of natural resources.

Russia and China, in particular, have been increasing their gold reserves, which adds credibility to the idea that the bloc may be preparing for such a move. A currency backed by real-world assets like gold, oil, and other commodities would also strengthen BRICS’ standing in the global financial system, allowing them to conduct trade in a stable currency that is independent of Western influence.

BRICS and Digital Currencies: The Likely Path Forward

Instead of adopting a cryptocurrency like XRP, BRICS is more likely to develop its own digital currencies or payment systems that align with their broader mission. China has already made significant progress with its digital yuan, while Russia is actively working on its digital ruble. These national digital currencies fit better with BRICS’ vision of financial sovereignty and regional influence.

In addition, there have been discussions about the creation of a shared digital currency for intra-group trade, which would allow BRICS nations to further reduce reliance on the dollar. Such a currency would be tailored specifically to their needs and not tied to any existing private or corporate entities, especially those based in the U.S.

The Bottom Line: Likely Speculation

While XRP's payment capabilities are impressive, the idea that BRICS would adopt it seems improbable. The BRICS nations, with their strong focus on de-dollarization and financial independence, are unlikely to embrace a system so closely linked to a U.S. company. A gold and commodity-backed currency, however, appears to be a more feasible option, one that would align with BRICS’ goals and enhance their economic leverage on the global stage.

For now, while XRP’s future within BRICS remains speculative, the unveiling of a gold-backed currency seems like a more realistic step toward the bloc’s objective of creating a new financial order.