The BRICS alliance is attracting new members from all corners who want to join the bloc and ditch the US dollar for trade. The alliance is becoming lucrative for developing countries that want to strengthen their local currencies and native economies. These nations are eager to break free from the clutches of the US dollar and make either their local currencies, CBDCs, or even Bitcoin the legal tender for cross-border transactions.
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One such country is El Salvador, which is exploring the options to join the BRICS alliance in 2024. El Salvador is the first country to legalize Bitcoin and also owns $400 million worth of BTC in their reserves. BRICS member Russia has been sanctioned by the US for nearly two years and is looking to settle trade without the dollar.
The sanctions are allowing El Salvador to sign new deals with BRICS member Russia. Russia needs a mutual understanding with El Salvador to navigate its economy without depending on the US dollar for trade.
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BRICS: El Salvador Ready To Join BRICS, Ditch US Dollar For Trade
The South American nation El Salvador confirmed that it is interested in joining the BRICS alliance in 2024. In addition, the country revealed that it is looking at the possibilities of settling trade in cryptocurrencies with Russia. “El Salvador proposes to use cryptocurrency in trade operations with the Russian Federation,” said Alexander Ilyukhin, head of the Russian Embassy branch in El Salvador.
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If Russia accepts Bitcoin and other cryptocurrencies for trade with El Salvador, many countries could follow the bandwagon. Also, if El Salvador gets inducted into BRICS, then they could pursue the Bitcoin payment with other members. The US dollar will remain in jeopardy as it could lose the supply and demand dynamics on the global stage. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.