As the 2024 BRICS Summit begins in Kazan, Russia, discussions around cryptocurrencies have taken center stage. Lawmakers from Brazil, Russia, India, China and South Africa are exploring the potential for Russian miners to leverage bitcoin in international trade, with the goal of circumventing strict sanctions imposed by the United States.
Lawmakers propose bitcoin sales by Russian miners
Originally formed as “BRIC” in 2006 by Brazil, Russia, India and China, the coalition expanded to include South Africa in 2010, becoming BRICS. This alliance seeks to unite influential developing nations to challenge the dominance of wealthier countries, particularly those in North America and Western Europe.
The current discussions around cryptocurrency They represent a strategic move to address economic challenges and improve financial independence from Western powers.
According to a x.com/matthew_sigel/status/1849101331325178236″ target=”_blank” rel=”noopener nofollow”>report According to Bloomberg, key lawmakers are advocating for Russian miners to sell their bitcoin to international buyers. These transactions could allow buyers to use bitcoin and other cryptocurrencies to pay for imports, effectively avoiding Western sanctions that have severely affected the Russian economy.
According to the report, by using bitcoin and other digital assets, these nations aim to create an alternative financial avenue that bypasses traditional systems that rely on the US dollar and conventional banking.
Richard Wolff, an American economist and professor emeritus at the University of Massachusetts Amherst, commented on the changing dynamics, noting that BRICS Coalition is gaining momentum as America's global influence declines.
Wolff highlighted the failures of US military interventions in Vietnam, Afghanistan and Iraq, suggesting that this decline in power is reflected in the geopolitical landscape. The economist also emphasized that the BRICS countries are not only gaining political influence but they are also progressing economically.
Putin advocates the adoption of cryptocurrencies
as before reported Per Bitcoinist, Russian President Vladimir Putin has also expressed his opinion on the need for BRICS nations to adopt cryptocurrencies and digital currencies in their financial transactions.
The Russian president believes this change could significantly benefit the economic coalition and other developing nations. However, Putin stressed the importance of establishing comprehensive agreements regulations to ensure a solid framework is in place before fully adopting cryptocurrencies.
In addition to cryptocurrency discussions, BRICS members have unveiled a new payments platform, BRICS Pay, designed to challenge the dominance of the SWIFT financial system.
This blockchain-based platform aims to facilitate cross-border transactions between BRICS countries, providing an alternative means to carry out financial operations while evading US sanctions.
This initiative marks a significant step towards revolutionizing financial transactions within the BRICS bloc, emphasizing the coalition's commitment to fostering economic cooperation and reducing dependence on Western financial infrastructures.
At the time of writing, bitcoin is trading at $65,845, down 2% in the last 24 hours and seven days.
Featured image of DALL-E, chart from TradingView.com
