Orhan 
The BRICS alliance, which has been dominating recent headlines, is working to weaken the dollar’s strength in international trade. Consisting of Brazil, Russia, India, China, and South Africa, the group has been further empowered by the inclusion of Iran, Egypt, Ethiopia, and the United Arab Emirates. Together, these countries represent over one-third of global GDP and are exploring alternative payment systems.
In meetings this week, BRICS decided to develop a new payment system based on national currencies, moving away from the dollar-based SWIFT system. According to “Crypto is Macro Now” newsletter author Noelle Acheson, Bitcoin is unlikely to become a favored currency among BRICS nations, yet these de-dollarization efforts could benefit Bitcoin.
Acheson stated, “Weakening global demand for dollar-based trade could pull the dollar down, potentially increasing Bitcoin’s appeal as a hedge against depreciation.” She highlighted that BRICS nations share economic and geopolitical grievances against the U.S., fueling their drive to create an alternative to the dollar.
BRICS’ stance against dollar dominance isn’t surprising, given the combined economic power and influence of these countries in global trade. While the dollar is unlikely to lose its reserve currency status immediately, this shift could positively impact Bitcoin.
Acheson noted that BRICS’ attempt to reduce reliance on the dollar may increase demand for value-storing assets like Bitcoin. Crypto supporters argue that Bitcoin’s limited supply and independence from traditional markets provide a hedge against uncertainties.
BRICS unseating the dollar in the short term is unlikely. However, their search for alternatives could signal significant changes in economic and geopolitical realities. Russian President Vladimir Putin’s comment that it’s not yet time for a unified BRICS currency underscores the challenges of this process. As a result, discussions around Bitcoin’s future role and value seem poised to intensify.
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