The Great De-Dollarization Heist: How India Is Turning the BRICS 'Unit' Into a Digital Rupee Power Play
Khushi V Rangdhol Dec 02, 2025 23:24
India is leveraging the BRICS "Unit" and its own e-Rupee to globalize the Rupee, strategically countering both the US Dollar and China’s Digital Yuan rise.
The global financial order is currently locked in what many are calling the "Digital Currency Cold War." On one side, the US Dollar's long-standing hegemony is being challenged by high interest rates and its frequent use as a tool for geopolitical sanctions. On the opposite side, China is aggressively pushing its Digital Yuan (e-CNY) through the Belt and Road Initiative and cross-border platforms like mBridge to create a Beijing-centric financial rail.
However, a third player is quietly "hijacking" the de-dollarization trend to serve its own sovereign interests. India is no longer just a passive participant in BRICS discussions; it is strategically using the bloc’s momentum to turn the Indian Rupee (INR) into a global blockchain-native currency, ensuring it doesn't get steamrolled by a Chinese-controlled alternative.
The BRICS ‘Unit’: India's Gold-Backed Shield
As we move toward 2026, the BRICS alliance has launched a pilot for the "Unit"—a gold-backed currency prototype. Unlike a traditional single currency that replaces national ones, the Unit is a multi-asset settlement framework. For New Delhi, the critical victory lies in the Unit’s basket design, which is rumored to feature an equal 12% allocation for both the Indian Rupee and the Chinese Yuan.
This equal weighting is a massive diplomatic win. It prevents the Digital Yuan from becoming the default reserve currency of the Global South by proxy. By backing this "Unit," India gains a gold-anchored settlement tool that allows it to trade with energy giants like Russia and the UAE without touching the US Dollar—or, more importantly, without being forced to use the Yuan.
India’s Two-Pronged Blockchain Strategy
While the world watches high-level summits, India is building its own "Digital Public Infrastructure" (DPI) to internationalize the Rupee on its own terms:
- The e-Rupee Expansion: India’s CBDC pilot has scaled massively, reaching millions of users and integrating with major retail banks. The RBI is now moving beyond domestic retail into programmable cross-border trials with Singapore and the UAE. The goal is simple: eliminate the "middleman" fees of the SWIFT system.
- The Vostro Account Liberalization: The RBI has introduced landmark policies allowing foreign nations to open Indian Rupee accounts for trade settlement. This creates a direct on-ramp for the Rupee to be held as a reserve asset by foreign entities, independent of any BRICS-wide token.
Journalistic Integrity: The "Neutrality" Hunch
While official government statements emphasize "South-South cooperation" and "multi-polarity," there is a strong market hunch—supported by India’s recent balancing act between the BRICS and the Western-led Quad—that New Delhi’s ultimate goal is Digital Rupee Neutrality.
It is not yet publicly documented as a formal policy, but many geopolitical analysts believe India is purposefully slowing down a unified "BRICS Currency" to give the e-Rupee enough time to establish its own independent cross-border rails. By supporting the idea of a BRICS coin, India stays at the table to prevent Chinese dominance, while simultaneously building the infrastructure to ensure the Rupee can stand alone on the global stage.
Why This Matters for 2026
With India set to host a major BRICS Summit in 2026, the focus will likely shift from gold-backed tokens to CBDC interoperability. For the Indian retail investor and tech enthusiast, this means the Rupee is evolving from a local currency into a programmable, blockchain-native asset. If India succeeds, the "Rupee-to-everything" bridge could become the preferred rail for the Global South, offering a middle path between the US-led SWIFT system and the China-led Digital Yuan.
Sources: Grand Pinnacle Tribune: BRICS Gold Rush And Blockchain Push, EBC Financial Group: When Will BRICS Currency Be Released?, Discovery Alert: BRICS Gold-Backed Digital Currency 2025, Kunvarji Wealth: BRICS Currency Plan 2025 Impact on India, Chatham House: India's Balancing Act Between West and Global South, IE Unicamp: Geopolitics of the mBridge Project, Corporate Professionals: Settlement of Cross-Border Transactions in INR, e-axes: CBDCs 2025 Progress Across Global Jurisdictions, International Banker: Impact of CBDCs on Regional Power Dynamics
Image source: Shutterstock.jpg)
