Amid the greater de-dollarisation efforts, and the rise of the digital currency, the BRICS bloc could use the recent Bitcoin emergence to help ditch the US Dollar. The alliance has long discussed the idea of a BRICS native currency that is a digital asset. However, the most prominent cryptocurrency could already help its case of decreasing Western hegemony.
Bitcoin has taken another massive step forward thanks to regulatory developments in the United States. Indeed, the countries Securities and Exchange Commission (SEC) approved 11 Spot Bitcoin ETFs. Subsequently, the investment vehicle should bring in more than $4 billion in inflows. That uptick in prominence could become a global reality that helps BRICS de-dollarization initiatives.
BRICS and Bitcoin Can Work Against the US Dollar
For much of the last year, the BRICS bloc had been defined by three key initiatives. Those were de-dollarization, expansion, and a native currency. At the start of 2024, the alliance had fully realized expansion and made massive strides in de-dollarization. However, the rest of the year is likely to see the continued commitment to those three ideas.
Amid that commitment, however, there is no doubt benefit to be gained from the growing digital asset trend. Specifically, for the BRICS bloc, the continued emergence of Bitcoin could help the alliance ditch the US Dollar.
In recent coverage of the expanded BRICS, the International Business Times noted the potential benefit of utilizing Bitcoin. Specifically, they noted that it is “becoming more realistic that cryptocurrency could play an important role [in a new international monetary system].”
Dmitry Gooschin stated, “The rise of Bitcoin and other cryptocurrencies in recent months is a clear indication that investors and others are seeking alternatives to the currency system.” More so than just that, the digital asset could be utilized in the continued emergency of that new monetary system.
The Euro, a currency that was tabbed as the potential dethroning asset for the Dollar, could not accomplish it. Moreover, the yuan and Ruble are contenders but have a long way to go. Bitcoin is a widely accepted currency that has a chance. Especially if adoption and acceptance continue to grow. Even if the bloc doesn’t use the specific asset, it should look to blockchain technology as the foundation of its native currency development.