The BRICS coalition, which includes Brazil, Russia, India, China, and South Africa, is intensifying its efforts to reduce dependence on the US dollar in global trade. This development could indirectly benefit Bitcoin (BTC).
Recently, the coalition expanded to include new member nations such as Iran, Egypt, Ethiopia, and the UAE. Together, these countries represent over a third of the world’s GDP. Discussions are underway to establish an alternative international payment system that bypasses the dollar.
During a recent meeting, BRICS representatives explored ways to phase out dollar-based systems like SWIFT in favor of settlements using national currencies. While Bitcoin is not expected to become the primary currency for these countries, moving away from the dollar could enhance the appeal of Bitcoin as noted by Noelle Acheson, author of the “Crypto is Macro Now” newsletter.
Acheson highlighted that a reduced demand for the dollar in international trade, coupled with its increasing supply, could weaken its position. This could further contribute to Bitcoin’s allure as a hedge against dollar devaluation.
Despite their differing political landscapes, BRICS countries share economic and geopolitical concerns regarding US influence, which motivates their pursuit of an alternative to the dollar. Exploring these alternatives may generate greater interest in Bitcoin as a protective asset valued for its scarcity and insulation from traditional market dependencies.
However, it is important to note that replacing the dollar is not a near-term goal, as emphasized by Russian President Vladimir Putin, who stated last week that a common BRICS currency remains a distant possibility. Nonetheless, these developments highlight shifting economic realities that could indirectly enhance the perceived value of cryptocurrencies like Bitcoin.