The BRICS nations have held tight to efforts that will eliminate the US dollar from international trade. Moreover, creating an alternative currency, alongside de-dollarization, has given Bitcoin momentum amid global currency reserve questions.
The economic bloc has been clear about its desire to decrease international reliance on the greenback. Additionally, the development of a BRICS currency has been ongoing, with South Africa calling for a close examination of how to approach its creation.
BRICS Currency Discussions are Underway
The BRICS collective has been a constant headline so far this year and illustrates the continuing shift of global power. Moreover, efforts to eliminate reliance on the US dollar have been spearheaded by the countries. Conversely, how this could continue to interact with various markets remains an interesting observation.
The motions taken by the BRICS have led to de-dollarization that has taken hold, granting Bitcoin momentum amid global reserve currency questions. Subsequently, the economic bloc has been discussing the development of its own currency. While an agreement is expected to be made at some point this year.
However, South Africa has called for caution in the development of this BRICS currency. Specifically, embuing the discourse with calls for caution regarding its implementation. Conversely, the country has also openly spoken of the value that this could bring to international trade.
These discussions and potential BRICS expansion are critical to all assets. Specifically, if a BRICS currency were to decrease the value of the US dollar, digital assets, and Bitcoin in particular, would benefit. Thus, these kinds of questions will have a ripple effect throughout several markets. Altering the global economic landscape as we understand it.
Ultimately, there is an expectation of the BRICS currency coming to fruition. However, there is an expectation that it will be utilized for international trade only. Still, how that affects the dollar’s value and various asset classes, will be vitally important. BRICS De-Dollarization efforts will continue as the new currency solidifies.