Headline: Bitcoin Discussed as an Alternative to the Dollar at the BRICS Summit
At the 16th BRICS Summit held in Kazan, the capital of Tatarstan, discussions included cryptocurrencies and efforts toward de-dollarization. The strategies developed by member countries to reduce reliance on the US dollar have the potential to challenge the dominance of Western financial systems. In this context, the idea of cryptocurrencies providing an alternative solution for international trade gained traction.
Russia drew attention by proposing to place Bitcoin at the center of state-backed mining activities. The country also decided to develop a settlement and payment infrastructure to bypass Western-dominated payment systems. Russia's mining giant BitRiver has partnered with the Russian Direct Investment Fund (RDIF) to establish crypto and artificial intelligence data centers in BRICS countries. This initiative aims to enhance technological independence among member states.
m-Bridge: A New Platform in De-dollarization Efforts
As part of BRICS' de-dollarization efforts, the introduction of the m-Bridge initiative focuses on using central bank digital currencies (CBDCs) for cross-border payments. This system is thought to potentially disrupt global financial balances by minimizing reliance on the US dollar. m-Bridge, which seeks to bypass the dollar through direct currency transactions, has attracted the attention of more than thirty central banks worldwide and stands out as a potential game changer.
ING analysts indicated that the success of m-Bridge could significantly impact global cross-border debts and receivables denominated in dollars. According to analyses, if BRICS countries shift to non-dollar transactions, a substantial portion of the global debt of $18.4 trillion and international debt securities of $13.6 trillion denominated in dollars could be affected.
Russia Proposes Using Bitcoin to Counter Sanctions
Russia presented a notable strategy at the BRICS Summit by proposing the use of Bitcoin to overcome economic sanctions. Russian lawmakers are considering Bitcoin for import payments, planning to offer it as an alternative payment method to the dollar. This proposal is viewed as an urgent solution to bypass Western financial obstacles.
The decentralized nature of cryptocurrencies presents an attractive option for countries facing sanctions. Russia's motivation to use Bitcoin as a payment solution is shaped by this context. The increasing focus on cryptocurrencies at the BRICS Summit could lead to changes in both traditional financial systems and global economic relations.
These developments are thought to strengthen the efforts of BRICS countries to reduce their dependence on the dollar and develop independent financial solutions against Western economic sanctions. Additionally, the decisions made at the summit are considered likely to lead to profound changes in future international trade and economic relations.