BRICS Considering Crypto and Common Currency
The BRICS nations, consisting of Brazil, Russia, India, China, and South Africa, could benefit from integrating crypto into their system or adopting the underlying technology to create their own currency. The recent approval of spot Bitcoin exchange-traded funds (ETFs) in the US has increased the real-world utility of cryptocurrencies like Bitcoin for daily transactions.
BRICS Expanding Reach
In 2024, BRICS welcomed six new members: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. The organization will continue to focus on de-dollarization, expansion, and the development of a common currency. While BRICS aims to promote cooperation among participating countries, it also represents a shared stance against the Western-led global order.
Russia, China, and Iran are notable examples of countries within BRICS that have faced conflicts or sanctions with the US. With Iran’s entry into BRICS, other members can benefit from its regional position and diplomatic backing.
The Role of Bitcoin and Crypto
As part of their mission to reduce reliance on the US dollar, BRICS may consider adopting Bitcoin or crypto as their common currency. The Bank of Russia is actively exploring an ‘experimental legal regime’ for cryptocurrencies to facilitate cross-border trade deals and overcome international sanctions.
There is increasing speculation that Bitcoin could play a significant role in the new international monetary system as investors seek alternatives to the current system. Even if BRICS doesn’t integrate crypto into its system, it may utilize blockchain technology for developing its common currency.
Hot Take: BRICS Embracing Crypto for Financial Independence
The integration of crypto or adoption of blockchain technology by BRICS nations could provide them with greater financial independence and reduce their reliance on the US dollar. As these countries explore the development of a common currency, Bitcoin’s widespread adoption and potential to challenge the current system make it a viable option for consideration.
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