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- The BRICS group is set to establish a new world currency and reduce its dependency on the U.S. dollar.
- Although it’s unlikely that this group of countries adopt Bitcoin, it has emerged as a catalyst for change.
Countries are waking up to the realization of their over-dependence on the U.S. dollar. A new group of countries- Brazil, Russia, India, China, and South Africa going by the acronym BRICS is working to form an alternative to existing Western financial and political establishments. This includes finding an alternative for the U.S. dollar as the world reserve and limiting its wide use in international transactions.
The group has noted that it has been receiving requests from countries to join. Some of these are those sanctioned by the U.S. This has long been a political tool for the West to keep some countries in line. Sanctioned countries find it hard to complete international trade, limiting their economic development.
India’s foreign minister Subrahmanyam Jaishankar said that BRICS represented a “symbol of change,” from what is the “old ways.”
Our gathering must send out a strong message that the world is multipolar, that it is rebalancing and that old ways cannot address new situations…
South African foreign minister Naledi Pandor stated;
Our vision of BRICS is for our partnership to provide global leadership in a world fractured by competition, geopolitical tension, inequality, and deteriorating global security…
Our discussions today will therefore focus on opportunities… strengthening and transforming global governance systems.
The coalition has also led to the development of a multilateral development bank, the New Development Bank, formerly referred to as the BRICS Development Bank. The bank aims to support projects through loans, guarantees, equity participation, and other financial products.
As CNF recently reported, Saudi Arabia’s government is in talks to join the New Development Bank (NDB). The Saudi Arabia government is looking into investment opportunities with the New Development Bank (NDB).
Of the member states, they have individually taken different stances on Bitcoin and crypto. China for example has outright banned Bitcoin and other cryptocurrencies. Russia on the other hand has gone as far as utilizing these digital assets for cross-border payments.
Others like Brazil and South Africa have neither embraced nor rejected, leaving the industry largely unregulated. Because of this, it is unlikely that the coalition can adopt Bitcoin as its new world currency.
