BRICS, the powerful group of the world’s leading emerging market economies, may be considering adopting BTC as an alternative to the USD. BRICS had announced that they planned to issue a new global reserve currency.
Furthermore, they were willing to work openly with any nation or company willing to partner with them.
Considerations for Bitcoin by BRICS
Bitcoin is a good pick for the BRICS alliance because of a couple of reasons:
- Holding BTC as a reserve currency may offer diversification away from USD.
- The blockchain technology that backs Bitcoin is considered a more efficient financial system.
For emerging economies to outdo the old powers, new and efficient ways of doing business will come in handy. No industrial revolution offers a better promise than blockchain.
In times past, countries declaring financial independence from the USD as a reserve currency have usually been met with unrivaled ruthless retaliation from the United States. The United States will (or already has) undoubtedly taken this deviation as an act of war.
Russia is Creating Special Institutions to Mine Cryptocurrency
According to TASS, a Russian news outlet, the organizations will use this currency to help settle foreign economic trade. Nabiullina, the head of the Bank of Russia, told the State Duma that the idea is to have crypto only used for international settlements and not for domestic use.
“We adhere to the same position that, within the country, cryptocurrency (…) should not be used. As for foreign payments, we assume that this is possible in the form of an experiment. This bill is also being prepared as a kind of an experimental legal regime.”
Elvira Nabiullina, the head of the Bank of Russia
Many have theorized, based on the current financial times, that the new BRICS currency would be related to cryptocurrency. However, recent developments hint that it might be connected to Bitcoin. The Central Bank of Russia, for instance, has created special organizations dedicated to mining cryptocurrency.
While the BRICS nations have been broadening their economic ties, the U.S.A. has been firmly trying to stifle their progress. The Bank of America still remains proud of its currency, exerting that no currency can compete with the U.S. Dollars.