The BRICS countries have gone to great lengths to remove the US dollar from international trade. The creation of an alternative currency, coupled with de-dollarization, has provided growth impetus for Bitcoin amid questions about global monetary reserves.
The BRICS, the bloc of major emerging economies that includes Brazil, Russia, India, China and South Africa, has been clear about its desire to reduce its reliance on the greenback. Therefore, these countries are looking to develop a common currency.
Discussions on the BRICS common currency are underway
The BRICS countries have been at the top of the discussion this year and exemplify the shifting global power. Furthermore, efforts to eliminate dependence on the US dollar have been spearheaded by these countries.
According to WatcherGuru, the actions of the BRICS have led to de-dollarization taking place, giving growth impetus to Bitcoin amid questions about the global reserve currency. After that, the economic bloc discussed developing their own currency. A deal is expected to be struck at some point this year.
However, South Africa has called for caution in developing the single currency. In particular, the country called for more caution in its creation.
These discussions and BRICS scalability are critical to all assets. Specifically, if a BRICS currency can devalue the US dollar, digital assets and especially Bitcoin will benefit. As a result, these types of questions will have spillover effects across a number of markets. Changing the global economic landscape as we understand it.
Finally, there is an expectation of the BRICS currency coming to fruition. However, it is also possible that the BRICS currency will only be used for international trade. The question is how this will affect the value of the dollar and different asset classes, which will be extremely important. And the BRICS de-dollarization efforts will continue as the new currency strengthens.
See also: De-dollarization of BRICS countries could pave the way for mass Bitcoin adoption
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