• Russia is moving forward with a gold digital asset pilot to find advanced payment solutions for the BRICS bloc.
  • BRICS member states risk tariff hikes from the US amid a push to reduce US dollar dominance.

Russia, a key member of the BRICS bloc, is moving forward with its plan to reduce dependence on foreign currencies. The country has reportedly launched a gold digital asset pilot, raising discussions about the impact on global payments.

Details of Russia’s Gold Digital Asset Pilot

According to reports , Russia’s recently launched pilot will use gold digital assets to settle international transactions. This move aims to reduce the country’s reliance on foreign currencies like the US dollar.

The digital assets are pegged to gold’s value and backed by real gold stored in vaults. Through the pilot program, individuals can purchase these blockchain-based tokens for Russian Rubles, with repayments scheduled for May 2025. 

Commenting on the development, Capital Lab’s Evgeny Shatov said the pilot paves the way for further experimentation. According to Shatov, this marks the first time gold-backed tokens are used to settle international trades. He, however, warned that the project comes with risks and challenges.

It is important to note that several countries are increasingly shifting their attention toward gold-backed tokens. This aligns with the mission of BRICS nations to reduce their reliance on the dollar. With Brazil leading the charge, the gold settlements may also play a key role in the upcoming BRICS payment system.

As summarized in our earlier news story, Russia’s President Vladimir Putin highlighted that the system would help facilitate independent trade between BRICS nations. The establishment of the payment system is a response to the BRICS’s desire to strengthen their position in the global financial system.

Therefore, Economist Jim Rickards thinks the BRICS can leverage digital gold in its payment system without the hassle of constant deliveries. With gold’s recent strong performance, a gold-backed token may soon find its way into global payments. However, it is important to note that this journey would come with major government opposition, particularly from the US.

Donald Trump’s Threat to the BRICS Nations

While the BRICS bloc continues to seek alternative payment methods, US President Donald Trump has issued a stern warning to the bloc. Trump has threatened 100% tariffs on BRICS nations if they move away from the US dollar.

As mentioned in our previous news brief, the President asked countries in the bloc to refrain from pursuing arrangements with other currencies. He noted that failure to comply could result in economic sanctions and potential exclusion from the US markets. 

Trump later increased the tariff threat to 150%, as noted in our earlier post. The President claimed his administration has seen a reduction in talks of a new currency in BRICS. Contrary to Trump’s opinion, the BRICS members have not relented in the search for new financial possibilities, as indicated by Russia’s gold digital asset pilot launch.

Additionally, Vladimir Putin has called for more transactions in national currencies. Some members, like Iran, still support the formation of a single currency.