All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- BRICS to discuss de-dollarization in upcoming leaders’ summit in a bid to break away from Western powers.
- It is rumored that Bitcoin could be considered an alternative to the US Dollar since it provides greater autonomy and diversification.
BRICS countries consisting of Brazil, Russia, India, China, and South Africa would reportedly discuss de-dollarization and the promotion of the use of national currencies in international trade in their upcoming leaders’ summit. According to South Africa’s diplomat in charge of BRICS relations, Anil Sooklal, the topic of the common BRICS currency would not be an agenda to be discussed.
Several reports have categorized the BRIC’s objectives into two: reducing reliance on the US dollar and harnessing the benefits of decentralized digital currencies. Bitcoin is rumored to be an alternative due to its financial independence.
The upcoming summit would be hosted in Johannesburg on Aug. 22-24. Sooklal speaking on the agenda said:
There’s never been talk of a BRICS currency, it’s not on the agenda … What we have said and we continue to deepen is trading in local currencies and settlement in local currencies.
Russian news outlet RT has also disclosed that a gold-backed common currency would be unveiled by the BRICS nations. Also, Brazil’s President Luiz Inacio Lula da Silva and Russian Foreign Minister Sergei Lavrov have been advocating for a common currency as part of the plans to counter the West in global finance.
However, Leslie Maasdorp, vice president and chief financial officer of the New Development Bank has clarified that the economic bloc has no immediate plans to compete with the US Dollar with any currency. According to him, the development of an alternative currency is a medium to long-term ambition.
BRICS Decision to Ditch the US Dollar and How Bitcoin Could Be the Best Alternative
The call for alternative currency is strongly linked to the decision of the US and its allies to impose financial sanctions on Russia for invading Ukraine. According to reports, about $300 billion in Russian central bank assets have been frozen.
Sooklal spoke on the de-dollarization.
BRICS started a process that has been expedited as a result of the conflict, as a result of unilateral sanctions … The days of a dollar-centric world are over, that’s a reality. We have a multipolar global trading system today.
South Africa’s central bank governor has noted that a common currency would call for the need to establish a banking union, a fiscal union, and macroeconomic convergence. India’s foreign minister has also stated that currency would be a national issue for a long time to come.
Very soon, the BRICS would have several members as over 40 countries have shown interest according to Sooklal. Out of these, 22 have already submitted formal applications. According to diplomats, the BRICS group could expand to include over 50 countries. For now, Argentina, Iran, and UAE could be the next countries to join BRICS in their upcoming August summit.
In this case, the adoption of Bitcoin could be huge news to the entire crypto ecosystem. Analysts have observed that embracing Bitcoin would enable BRICS countries to confirm their independence from traditional financial systems controlled by the West. In addition, geopolitical alliances would be shifted as countries align with emerging powers and financial systems that provide more autonomy and diversification.
As of press time, Bitcoin (BTC) was trading at $29,156.56 after falling by 3 percent in the last seven days.
