Germany’s largest financial establishment Deutsche Bank confirmed in a recent report that BRICS has settled 28% of trade in cryptocurrencies. The new form of remittance comes at a time when the alliance is looking to end dependency on the US dollar. The bloc is finding several avenues to use all other forms of payments except the US dollar for cross-border transactions.
Also Read: BRICS: 3 Countries & 1 Continent Make Bold Plans to Ditch US Dollar
Deutsche Bank revealed in its report that the remittances in cryptocurrencies from BRICS members have surged by 147% in 2024. The development adds pressure on the US dollar as emerging economies are cutting ties with the world’s reserve currency. The move will strengthen local currencies making businesses thrive in emerging economies.
Also Read: BRICS: De-Dollarization Is Unstoppable
BRICS: 28% of Trade Settled Using Cryptocurrencies, Say Deutsche Bank
The trillion-dollar asset management firm, Vaneck’s Head of Digital Assets Research, Matthew Sigel shared the insights on his X handle. He highlighted Deutsche Bank’s report on cryptocurrencies signifying the increase in transactions among BRICS member nations.
Also Read: BRICS: A World Without the US Dollar, Myth or Reality?
BRICS member Russia is the top country to have used cryptocurrencies in payment settlements, reported Deutsche Bank. All the other members have also paid cryptocurrencies and not the US dollar, read the report. “Russia in particular stands out in this area, with crypto users having grown from 2.9m (2020) to 24.5m (2024).”
Also Read: JP Morgan Says BRICS Payment System Can Weaken US Dollar
“Amid geopolitical tensions, cryptocurrencies have emerged as a strategic financial tool. BRICS nations now conduct 28% of cross-border cryptocurrency transactions. The increasing importance of crypto in facilitating global economic flows is further evidenced by the fact that international remittances via crypto have surged 147% y/y,” Sigel shared Deutsche Bank’s report on X.
Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. Apart from BRICS local currencies, cryptocurrencies now pose a threat to the US dollar’s supremacy, according to Deutsche Bank.