Brazil President calls to end USD trade dominance as BRICS add new nations to expedite de-dollarization
- Over 20 countries have applied to join BRICS, a group of world economies comprising Brazil, Russia, India, China, and South Africa.
- The move could make for a strong financial reset, given the need for a common currency as the de-dollarisation campaign continues.
- Bitcoin price could see yet another catalyst for value growth behind such a tectonic shift towards greater adoption.
Brazil president Luiz Inácio Lula da Silva has advocated for a termination of the trade dominance of the US dollar (USD) as talks about new countries to the BRICS economic alliance comprising Brazil, Russia, India, China, and South Africa continue. He believes the door is open for interested countries, provided they comply with established rules.
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BRICS to add new members
BRICS, comprising five member countries, could grow to almost 27 countries in total soon, with the expansion slated for the next summit. With this oncoming gathering, a “tectonic shift” is expected, meaning a strong move that could determine the future of the economic world as we know it.
BRICS to announce memberships of new nations at the summit, citing a significant shift in the global order.
— Watcher.Guru (@WatcherGuru) August 2, 2023
Countries that have formally applied to join the alliance:
United Arab Emirates
Saudi Arabia
Bangladesh
Venezuela
Argentina
Indonesia
Ethiopia
Bahrain
Mexico…
The next summit could see new economic alliances being formed for the short and long term. Citing Anil Sooklal, ambassador to the European Union, in a commentary with Bloomberg:
BRICS has become a powerful global force enacting real change. This change is not coming voluntarily. BRICS has catalysed a tectonic shift in global geopolitical architecture, starting with the summit.
With the five current members of BRICS being self-proclaimed anti-dollars, and given that most of the recruit nations are also championing their campaign against the notion of a single currency playing dominance and superiority over the rest of the currencies, the move could be bullish for Bitcoin (BTC).
This looks like a list of 2nd world or anti-American countries.
— Brendan (@BrenDegen) August 2, 2023
Bitcoin adoption and value to grow as BRICS expand
With more countries waging a campaign against the dollar, the need for a common currency presents itself, with crypto presenting as the first alternative. Also, countries like Russia, India, China, Brazil, and South Africa have become widespread adopters of blockchain technology, as demonstrated in their recent infrastructural moves to support the industry.
Accordingly, the development could catalyse Bitcoin price, fueling a possible value surge as demand for the currency increases to settle inter-border transactions. The prospects have some community members excited as the Federal Reserve continues to influence the industry. A more robust backing from heft world economies could go a long way in diluting this influence.
This is the best thing to happen in getting rid of the Fed. Don’t think Trump and Putin didn’t have a hand in this. Why do you think he went and showed the world where he stiff with these countries on his foreign policy trip years ago? Exciting times are ahead!
— BlueChecksMatter (@CheckThatBlue) August 2, 2023
***The Fed was…
Other community members are already intrigued about the impact such a move would have on the international landscape, with Saudi Arabia and the Middle East, in general, promising to be the real game changer as they push towards becoming the global hub for crypto.
Nevertheless, skeptics remain doubtful of the promised “tectonic shift,” given the current dominance of the USD despite almost half the world’s population leaving the dollar and going to a commodity-based currency.
Cryptocurrency metrics FAQs
What is circulating supply?
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. The algorithm of the underlying blockchain technology defines this. Since its inception, 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens or mistakenly sending assets to addresses of incompatible blockchains.
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Market capitalization is the result of multiplying the circulating supply of a particular asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, resulting from the more than 19 million BTC in circulation multiplied by the Bitcoin price of around $29,600.
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Trading volume refers to the total number of tokens for a specific asset transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment; this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people buy and sell cryptocurrency.
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Funding rates are designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future and index prices' periodic payments converge regularly. When the funding rate is positive, the price of the perpetual contract is higher than the marked price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence, traders with short positions pay traders who have opened long positions.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
