We knew that the BRICS were considering, to put an end to the hegemony of the dollar, setting up a common currency with possibly a digital option in crypto. It seems that in recent times, the crypto in question would be bitcoin (BTC). But can the flagship crypto really constitute a relevant means of dedollarization?
BRICS are exploring bitcoin (BTC) as a means of dedollarization
According to information disclosed this Tuesday, January 30, the nations grouped within BRICS are exploring the monetary potential of cryptos. Their attention would be particularly focused on bitcoin (BTC). They seem to see this crypto as the means to destroy the dollar.
This development comes in a particular context: that of the approval of the first Bitcoin Spot ETF by the SEC. This historic green light would have fueled discussions within BRICS on the practical applications of cryptos in daily transactions.
This development is consistent with BRICS’ long-standing goal of reforming international financial institutions. The vision, ultimately, is to reduce dependence on structures led by the West.
Crucially, this prospect would suit several BRICS members. We are thinking in particular of Russia, but also of Iran, a new member of the alliance, which is subject to Western sanctions, for various reasons. The question that arises is whether bitcoin (BTC) can really serve the BRICS dedollarization project.
Does bitcoin (BTC) deserve BRICS attention?
It is not an easy question to say whether bitcoin (BTC) can contribute to challenging the supremacy of the US dollar. However, the question deserves to be looked at for a second.
It should be noted that previous monetary attempts such as the euro have failed. In this context, the widespread adoption of bitcoin (BTC) and its decentralized nature may represent a unique opportunity for BRICS.
To say the least, a certain strength is almost unanimously recognized in the flagship crypto. Namely its ability to operate outside of traditionally established banking and financial systems. Without forgetting its acceptance by an increasingly growing number of investors.
Many analysts believe that by adopting a digital currency like bitcoin (BTC), BRICS nations can assert greater financial sovereignty. Especially since they could thus circumvent the limits of the financial system dominated by the United States. This, by exploiting the transparency, security and efficiency of the blockchain. The latter also offers itself as an interesting option to reduce transaction costs and promote financial inclusion within the alliance.
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