BRICS Nations to Dethrone the US Dollar With Bitcoin?

Joshua Ramos

With the BRICS summit arriving in just a few months, the topics of expansion and an alternative currency will dominate the discussions. Moreover, as the BRICS nations seek expansion as a method to dethrone the US dollar, could Bitcoin represent a viable alternative?

China has already voiced its support for the potential expansion plans for the bloc. Subsequently, their stance of inclusivity has certainly aided the de-dollarization efforts that have abounded for much of this year. Alternatively, could the digital asset develop into an alternative that the bloc could seek to finalize those efforts? 

BRICS Expansion Plans

brics leaders summit flags

There is no denying that the BRICS countries have seen the potential benefits of expansion. Indeed, a Chinese Foreign Ministry representative, Mao Ning, discussed the country’s approach to the concept. In recent statements, Mao stated that the country is “ready to bring more like-minded partners into the big family of BRICS.”

The decision arrives just months before the annual summit is set to take place. There, the countries that are seeking entry into the bloc will seek a decision on the possible expansion of the bloc. Thus, it is likely that guidelines for membership will be discussed, and potentially even enacted at the gathering of heads of state. 

Reports have suggested that more than 20 new countries have expressed interest in joining the bloc. Moreover, they join nations like Egypt, Saudi Arabia, Argentina, the United Arab Emirates, and many more seeking to join the collective. However, their arrival will likely be vital to one of their greatest hopes: dethroning the US dollar. 

Alternative Currency Plans

BRICS Nations Leading International Interest in Bitcoin
Source: Unsplash

Following the discussions of expansion, the next vital talking point will be the BRICS currency. Indeed, the bloc has long embraced de-dollarization, eliminating the prevalence of the greenback amidst international settlements between the bloc. Thus, a plan for an alternative trade currency has long been discussed. Liley is to be embraced even more at the upcoming summit. 

The plans for an alternative currency are vitally important, mostly due to their incredible potential. Indeed, the member countries have already utilized local currencies to facilitate trade, moving away from the dollar. Alternatively, with rumors of the new currency being pegged to the Chinese yuan, its potential is undeniable. 

Conversely, there are few details surrounding the functionality or mechanisms of the currency. Indeed, we only know that the bloc is seeking to find an alternative to the long-dominant US dollar. However, that alternative could come from a very different place. 

Bitcoin a Viable Alternative for BRICS?

Could the BRICS nations dethrone the US dollar with Bitcoin? The idea could actually have some merit. Although it would not be a currency developed strictly by the bloc, it is an alternative currency that has no national currency ties. Consequently, it could be utilized by all member states, without needing to peg it to a currency, thus inheriting a specific economic circumstance.

Moreover, Bitcoin has proven to be the most prominent digital asset and has withstood some of the industry’s harshest moments. Even now, amidst uncertainty throughout the sector, BTC is currently priced above $25,000 with a rather healthy outlook. Thus, could present a viable alternative to the SU dollar for the BRICS members.