Digital payments have evolved into instruments of geopolitical influence, financial sovereignty and strategic competition.
Ricardo Martins | Curitiba, Brazil | Latin America Correspondent, The News Analytics Herald
For decades, the post-war financial order revolved around the U.S. dollar, anchored by SWIFT messaging, dollar-denominated trade and global demand for U.S. Treasuries. The rise of the petrodollar system in the 1970s further entrenched American financial influence. Today, that architecture remains dominant, but it is evolving as states seek greater resilience, strategic autonomy and protection from geopolitical shocks.
The new great-power contest is expanding beyond territory and technology into the architecture of money, payments and financial influence.
According to Ambassador Mohamed A. Qubaty, former Yemeni Cabinet Minister and strategic affairs analyst, rivalry among major powers increasingly extends into financial infrastructure itself. While the dollar remains the world’s primary reserve and trading currency, states are gradually building alternative mechanisms to reduce vulnerabilities arising from sanctions, financial coercion and external dependence.
Prof. Rodrigo Fagundes Cezar of Fundação Getúlio Vargas argues that alternative payment systems are not merely technical platforms but instruments of economic statecraft. Brazil’s engagement with BRICS payment discussions reflects a strategy of diversification, balancing relationships with the United States, China, India and Russia. In this context, Brazil’s Pix payment system has become more than a domestic innovation; it is increasingly part of wider debates over financial influence and sovereignty.
Other analysts emphasise the defensive logic behind these developments. Hussein Askary notes that China’s Cross-Border Interbank Payment System (CIPS) and Russia’s System for Transfer of Financial Messages (SPFS) were developed to reduce dependence on Western-controlled financial channels. Indian analyst Rajan Mishra similarly argues that finance has become increasingly weaponised, making payment redundancy and monetary autonomy strategic necessities.
Economics professor Samuele Murtinu explains that the dollar system remains resilient because payment networks are classic network industries. High switching costs and powerful network effects make alternatives difficult to scale. Consequently, de-dollarisation remains largely pragmatic rather than ideological. Kristian Alexander, a geopolitical analyst in Dubai, observes that sanctions imposed since 2022 have accelerated interest in local-currency settlements and central bank digital currencies (CBDCs), particularly among BRICS+ countries seeking greater strategic flexibility.
PAYMENT POWER SHIFT
China’s CIPS supports yuan-denominated transactions with partners across the Global South, while Russia’s SPFS provides a domestic and regional alternative to SWIFT. India contributes UPI, now expanding internationally through NPCI International, while Brazil’s Pix facilitates instant payments and supports local-currency trade arrangements.
These initiatives are increasingly linked to discussions around BRICS Pay, a messaging and settlement framework intended to connect national payment infrastructures. Although still evolving, the concept reflects growing interest in creating alternative pathways for international commerce.
CBDCs add another dimension. China’s e-CNY and projects such as mBridge, involving China, Thailand, the UAE and Saudi Arabia, explore direct central-bank settlements that bypass traditional correspondent banking channels. Such innovations could gradually reduce the effectiveness of sanctions as a policy instrument.
Nevertheless, dollar dominance remains substantial. IMF reserve data show the dollar accounting for approximately 57 per cent of global foreign-exchange reserves, while around 40 per cent of global trade continues to be settled in dollars. The renminbi’s role is growing but remains comparatively modest. The most likely trajectory is therefore gradual diversification rather than replacement.
FINANCIAL STATECRAFT
The central story is not the collapse of the dollar but the global search for alternatives. Financial infrastructure increasingly resembles other forms of strategic infrastructure such as ports, pipelines and undersea cables. Whoever controls these systems gains significant economic leverage.
Payment networks have become strategic infrastructure where economic sovereignty, sanctions resilience and geopolitical leverage are increasingly interconnected.
Alternative financial systems are expanding states’ room for manoeuvre. Local-currency settlements, regional clearing mechanisms and CBDCs provide governments with greater flexibility and reduce dependence on a single financial ecosystem. As a result, payment systems are becoming integral instruments of national strategy.
STRATEGIC AUTONOMY
Brazil’s Pix and India’s UPI illustrate how national payment platforms can acquire geopolitical significance. These systems strengthen domestic financial sovereignty while creating opportunities for international connectivity.
BRICS+ does not currently challenge the dollar’s global position, but it is building institutions and mechanisms that support strategic diversification. The expanded grouping combines significant economic weight, energy resources, financial capital and regional influence. The objective is not necessarily confrontation but greater choice.
The New Development Bank (NDB) reflects this approach. Rather than replacing existing institutions, it seeks to expand lending in local currencies, reduce dependence on dollar-denominated debt and provide additional financing options for emerging economies.
MULTIPOLAR FINANCE
Reserve-currency status depends on trust, liquidity, legal certainty and deep financial markets—areas where the dollar remains exceptionally strong. Yet a gradual shift is underway as countries invest in multiple payment and settlement systems, expand local-currency trade and develop digital financial infrastructure.
De-dollarisation is not a sudden break from the existing system but a strategic hedge towards a more multipolar financial order.
The dollar era is far from over, but the international financial landscape is becoming more diverse. Most countries are not seeking to abandon the dollar; rather, they are seeking greater flexibility and insulation from geopolitical risk. The emerging contest is therefore not over replacing one financial order with another, but over shaping a more plural and resilient global monetary architecture.
(Ricardo Martins. PhD in Sociology, specialising in international relations, geopolitics, and Latin American politics. He recently completed his postdoctoral fellowship at Utrecht University in the Netherlands and covers major developments in Latin America for News Analytics. The views expressed are of the author and do not necessarily reflect the views of The News Analytics Herald.)
