BRICS Embraces Crypto Shuns US Dollar

The economic situation continues to expand in the battle between East Vs West and it is an interesting development that contradicts China’s stance on outlawing Crypto Currency as it continues to lead BRICS which in the latest breaking news focuses on the inclusion of crypto currency while excluding the US Dollar

It's a bold move signalling a significant shift in global trade dynamics BRICS (Brazil, Russia, India, China, and South Africa) is setting the stage to include crypto currencies in cross-border transactions while distancing itself from the US dollar. This seismic shift feels like it is eons away from China’s position on decentralised assets but it is being propelled by economic and geopolitical motivations and carries profound implications for the future of international commerce.

Russia, a key member of BRICS is spearheading this transformation. Amidst facing economic sanctions from the United States which haven’t gone as planned more so because Russia has had significant time to come up with strategies to weaken the impacts of the sanctions.

Russia Picks Up Pace

Russia has intensified its efforts to embrace crypto currencies as a means to settle trade transactions to by pass their SWIFT bans. The decision to adopt crypto currencies which was announced by the Bank of Russia is not merely a tactical manoeuvre but a strategic response to safeguard its economic sovereignty.

Elvira Nabiullina, Governor of the Bank of Russia confirmed Russia's commitment to launching crypto currency payments in an experimental capacity. This light approach provides an insight into the meticulous planning and evaluation required to ensure the stability and security of such a system. With three businesses already expressing interest in participating in the trial phase. Russia is poised to lead the charge towards crypto currency adoption within BRICS.

BRICS nations are embarking on the creation of a payment system leveraging blockchain and digital technologies. This ambitious move is aimed at reducing reliance on the US dollar in settlement and reflects a concerted effort to assert greater autonomy in the global monetary landscape. Kremlin aide Yury Ushakov emphasized the importance of creating an independent payment system that prioritizes efficiency, accessibility and neutrality.

BRICS Potential Impact

The potential implications of BRICS' embrace of crypto currencies and blockchain technology extend far beyond mere diversification of payment methods. By challenging the hegemony of the US dollar BRICS aims to reshape the international monetary system fundamentally. The establishment of a payment system based on state-of-the-art tools signals a developmental shift towards a more decentralised and inclusive financial architecture that utilises Decentralized Finance (DeFi).

BRICS' push towards de-dollarization is gaining momentum attracting interest from nations beyond its core membership with 3 nations showing interest. Serbia in a significant development has been invited to participate in the upcoming BRICS summit. This move highlights BRICS' ambition to expand its influence globally and forge partnerships beyond traditional geopolitical boundaries. As more nations express interest in joining the alliance BRICS' stature as a formidable economic bloc continues to grow.

But this doesn’t come without challenges and complexities which loom on the horizon. The induction of new members Zimbabwe, Cameroon and Pakistan raises more questions about the cohesion and objectives of BRICS. While these countries seek to leverage BRICS membership for economic development there are concerns lingering regarding their contributions and alignment with the alliance's strategic goals.

Nations at Odds

India's reservations regarding Pakistan's bid for BRICS membership provides a view into this issue as the delicate balance of power within the alliance. As consensus based decisions shape the trajectory of BRICS internal dynamics and divergent interests among member states may influence future developments.

The prospect of BRICS steering global trade through its own Central Bank Digital Currencies (CBDCs) poses a formidable challenge to the supremacy of the US dollar. If successful BRICS could bring in a new era of financial multipolarity where traditional power dynamics are reshuffled and emerging economies assert greater influence.

BRICS' embracement of crypto currencies and blockchain technology marks a pivotal moment in the evolution of global trade and finance brought on by sanctions on Russia. BRICS is laying the foundation for a new rival to the current western system, what it means for broader markets is uncertain at this stage and it’s impacts on global stability.

As the alliance expands its reach and solidifies its position on the world stage the era of the US dollar's uncontested dominance may be drawing to a close but questions need to be asked, can the world function with multiple financial systems, how are they kept in check, how will it benefit the globe or will it just lead humanity to a faster demise?.

Image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.

Posted Using InLeo Alpha