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- BRICS has expanded, adding six new nations to its bloc and strengthening its economic reach.
- Already hoarding gold, speculators are still optimistic that the coalition could seek Bitcoin (BTC) as a reserve currency.
The BRICS bloc is strengthening its coalition through cooperation and collaboration. In particular, Saudi Arabia and India have sought to strengthen their economic ties by collaborating in the finance and security sectors. The two nations officially agreed on the new partnership during the just concluded G20 Summit.
Saudi Arabia was officially welcomed to the BRICS bloc in August during the BRICS summit hosted in South Africa. During the event, six new nations including Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates were welcomed as the bloc looks to expand.
During the summit, the nations not only discussed expansion plans but also the promotion of local currencies for international trade. One of the main initiatives of the bloc is de-dollarization which will see member nations reduce their reliance on the U.S. dollar for international transactions and as a reserve currency.
The bloc was initially rumored to be working on a common currency that would challenge the USD, however, those plans have been put on hold. For now, member countries are choosing to settle in local currencies. But, in 2024 when Russia hosts the next summit, there’s speculation that a common currency will be the top agenda.
As CNF recently reported, BRICS has taken a similar stance as the ASEAN bloc by ditching the US Dollar while they consider a common currency for international trade.
Related: Farewell, USD: Bitcoin Joins 21 Nations, BRICS, and ASEAN in Abandoning the U.S. Dollar
The possiblly new common currency could be backed by gold. In the past couple of weeks, BRICS nations have been hoarding and accumulating huge amounts of gold. China and Russia are leading with this accumulation, setting the trend for the rest of the members.
Amidst discussions of a common currency, many in the crypto community have highlighted Bitcoin (BTC) as a clear answer for the bloc. In fact, the asset is generally regarded as digital gold. In line with the bloc’s objectives, Bitcoin challenges the dollar’s dominance. Decentralized, the digital asset is independent of any government or authority. In addition, like gold, Bitcoin is useful for storing value and hedging inflation.
Crypto investors have been speculating that BRICS could adopt Bitcoin, exposing it to more than 3.5 billion people in the world. Inevitably, this would drive mass demand and push prices to new all-time highs.
