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- Re-elected Russian President Vladimir Putin is urging Middle Eastern countries to abandon the U.S. dollar in their oil trade to reduce the dollar’s influence.
- As the dollar comes under pressure from its weakening global superiority and the rise of BRICS, Bitcoin is emerging as a possible replacement.
BRICS is emerging as a formidable force against the West and the U.S. dollar in particular. The intergovernmental organization, which comprises Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates, is looking to create a new coalition to dethrone the West, beginning with the U.S. dollar, which gives the U.S. the power it possesses.
The recently re-elected President of Russia, Vladimir Putin, has called on Middle Eastern countries to abandon the U.S. dollar for their oil trade. This remains one of the key roles the dollar plays, giving it a major role in global markets. This further creates great demand for the currency all over the world.
🇷🇺 Russia's President Putin says if oil producers in the Middle East stop using the US dollar, it will be the end of the dollar. pic.twitter.com/FoRQalPCg6
— BRICS (@BRICSinfo) March 17, 2024
With the UAE and several Middle Eastern countries looking to the bloc, this could be a reality in the future. The Middle Eastern bloc long ago agreed to use the dollar in exchange for military support from the West, but with Russia and China becoming military powerhouses, this could no longer be necessary.
As CNF recently reported, renowned economist Daniel Lacalle raises alarms over the United States’ fiscal policies, on another front, the US grapples with the challenges of embracing Central Bank Digital Currencies (CBDCs). Similar sentiments were raised by Elon Musk, who called the dollar a ‘scam coin.’ Elon Musk joked about the US dollar and compared it to a “scam coin” with high circulation and unequal distribution.
Notably, BRICS member Russia has passed new Digital Financial Assets (DFAs) to help fight the dollar’s dominance. This shows BRICS’ commitment to displacing the dollar for international trade.
In the past, the BRICS alliance has hinted at launching a common, gold-backed currency. A report indicates that BRICS nations led by China and Russia are stockpiling gold that could be used to back a new currency to challenge the U.S. dollar. However, implementing this plan could be challenging, leading to such plans taking a back seat.
Some in the crypto community have suggested that Bitcoin (BTC) could offer the ultimate solution. Already regarded as digital gold, the digital asset offers numerous advantages. Based on its tokenomics and rising adoption, the digital asset has the ability to store value and have future growth prospects.
As an example of its potential, El Salvador added Bitcoin to its reserves and added it as a legal tender. Despite many world organizations questioning and condemning the move, the country has recently revealed a $400 million profit based on its investment.
