Brazil’s Lula Pushes for BRICS Common Currency
Brazilian President Luiz Inacio Lula Da Silva has advocated for the creation of a common currency within the BRICS bloc. Lula believes that having a shared currency between Brazil, Russia, India, China, and South Africa would expand payment options and reduce vulnerabilities. However, Russian Foreign Minister Sergey Lavrov disagreed, stating that the focus should be on making economic transactions independent from the U.S.-controlled financial system. While a common currency was not established at the recent BRICS summit, the importance of encouraging the use of local currencies in international trade and financial transactions was highlighted in the summit’s final declaration.
Key Points:
- Lula supports a common currency within the BRICS bloc
- Lavrov believes the focus should be on independence from the U.S. financial system
- No concrete plans for a common currency were made at the summit
- The use of local currencies in international transactions was emphasized
Binance Drops Cards Services
Cryptocurrency exchange Binance has announced that it will no longer offer card-related products in Latin America and the Middle East starting on September 21. The decision comes after Binance’s partnership with Mastercard was dropped in these regions. Binance stated that less than 1% of its users in these markets would be affected and directed them to use crypto-native payment systems like Binance Pay instead.
Key Points:
- Binance ends card-related services in Latin America and the Middle East
- Mastercard dropped its partnership with Binance in these regions
- Less than 1% of Binance users in these markets are impacted
- Users are encouraged to use Binance Pay or other crypto-native payment systems
Argentina Invited to Be Part of BRICS
The BRICS bloc has announced the expansion of its member countries to include Argentina, starting from January 1, 2024. Despite facing economic challenges such as devaluation and inflation, Argentine President Alberto Fernandez welcomed the invitation, stating that it opens up new opportunities for the nation. Fernandez believes that BRICS plays a crucial role in designing a global financial architecture that considers the needs of growth, trade, investment, and social welfare.
Key Points:
- Argentina will join the expanded BRICS organization from 2024
- President Fernandez sees this as an opportunity for the country
- BRICS is important for creating a global financial architecture
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Hot Take:
BRICS bloc’s discussions on a common currency and the invitation of Argentina demonstrate the growing influence and ambitions of emerging economies. While the establishment of a common currency remains uncertain, the emphasis on local currencies and independence from the U.S.-controlled financial system reflects a desire for greater economic autonomy. Binance’s decision to drop card services highlights the challenges faced by crypto exchanges in establishing partnerships with traditional financial institutions. The inclusion of Argentina in BRICS offers potential economic growth opportunities for the troubled nation. Overall, these developments showcase the evolving landscape of global finance and the increasing role of cryptocurrencies.
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