Is Bitcoin the deadly weapon of the BRICS?

We knew that the BRICS were considering, in order to end the hegemony of the dollar, to establish a common currency with possibly a digital option in crypto. It appears that recently, the crypto in question would be bitcoin (BTC). But can the flagship crypto really constitute an appropriate means of dedollarization?

The BRICS explore bitcoin (BTC) as a means of dedollarization

According to information disclosed this Tuesday, January 30, the nations grouped within the BRICS are exploring the monetary potential of cryptos. Their attention is particularly focused on bitcoin (BTC). They seem to see in this crypto, a way to annihilate 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 is said to have fueled discussions within the BRICS about the practical applications of cryptos in daily transactions.

This evolution is in line with the long-standing goal of the BRICS, which is to reform the international financial institutions. The ultimate vision being to reduce dependence on Western-led structures.

Fundamentally, this perspective would benefit several members of the BRICS. Notably Russia, but also Iran, a new adherent to the alliance, which suffer from Western sanctions, for various reasons. The question that arises is whether bitcoin (BTC) can really serve the BRICS’ project of dedollarization.

Challenging the Throne: Will Bitcoin Be the BRICS’ Secret Weapon Against Dollar Hegemony?https://t.co/ImJmYSek2b

— John Morgan (@johnmorganFL) January 30, 2024

Does bitcoin (BTC) deserve their attention?

It is not an easy question to say whether bitcoin (BTC) can contribute to the undermining of the supremacy of the American dollar. However, the issue is worth a second look.

It should be understood that previous monetary attempts such as the euro have failed. In this context, the widespread adoption of bitcoin (BTC) and its decentralized nature could represent a unique opportunity for the BRICS.

At the very least, the flagship crypto is almost unanimously recognized for one strength. Namely, its ability to operate outside of the traditionally established banking and financial systems. Not to mention its acceptance by an increasing number of investors.

Many analysts believe that by adopting a digital currency like bitcoin (BTC), the BRICS nations could assert greater financial sovereignty. Especially since they could bypass the limits of the US-dominated financial system. This is through exploiting the transparency, security, and efficiency of the blockchain. The latter also being an interesting option to reduce transaction costs and promote financial inclusion within the alliance.