• BRICS will be moving away from US Dollar trade settlements, in line with its vision.
  • BRICS added six new countries today, including Saudi Arabia, UAE and Iran, which could affect oil trade, consequently impacting USD.
  • While no alternative currency has been announced, the de-dollarisation would allow crypto tokens such as Bitcoin and stablecoins to take over.

The United States Dollar (USD) has been losing influence over the global markets owing to the worsening foreign relations between countries such as BRICS. One of the biggest decisions seems to be coming from the Eastern hemisphere, which could have a long-lasting bearish impact on USD but could allow for a better future for cryptocurrencies.

BRICS gives up USD; Crypto could swoop in

BRICS, the bloc representing some of the biggest emerging economies in the world - Brazil, Russia, India, China and South Africa, is looking to abandon the use of Dollar for trade settlements completely. Earlier this week, Russian President Vladimir Putin stated the same publicly and even called for a new currency to conduct trade in.

This was followed by the bloc announcing the addition of six new countries from the dozens of applications it has recently received. The countries joining BRICS include Iran, Argentina, United Arab Emirates (UAE), Egypt, Saudi Arabia and Ethiopia. Starting in 2024, these countries will become a part of the group.

What is to be noted here is that of the six new countries, Saudi Arabia, UAE and Iran are some of the biggest oil exporters in the world. The United States has had trade relations with these countries for oil for the longest time, and most of it is settled in USD. 

However, with the countries joining BRICS and if the decision to abandon USD for trade passes, oil trades would be settled in an alternate currency. This could have a devastating impact on the value of the Dollar but prove to be beneficial for the alternative currency.

At the moment, no alternative currency has been announced, but the rapid adoption of cryptocurrencies does leave the door open for a digital asset to take the spot. Beyond Bitcoin, blockchain-based currencies have proved to be quick, efficient and cheap and could make for a valid replacement for the Dollar. 

However, the possibility of a stablecoin like Tether (USDT) or USD Coin (USDC) being chosen is more likely than other cryptocurrencies. The reason behind this is the steady value of the assets as compared to cryptocurrencies. Plus, stablecoins are largely unaffected by the volatility in the crypto and global markets, making them a viable alternative.

Nevertheless, if an alternate was to be picked by BRICS, it would most likely be a currency that is controlled by the bloc. However, the opportunity of the same being a blockchain-based asset cannot completely be ruled out owing to the benefits of the technology.


Like this article? Help us with some feedback by answering this survey:



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

TRON DAO powers $1.2B in USDT exchange inflows, igniting stablecoin activity and on-chain volume

TRON DAO powers $1.2B in USDT exchange inflows, igniting stablecoin activity and on-chain volume

TRON DAO facilitates $1.2 billion in USDT exchange inflows over the past seven days as on-chain volume hits $72 billion. An increase in USDT exchange inflows suggests that traders are either preparing to buy the dip or could be covering long positions.

More Cryptocurrencies News
Bitcoin could fall toward the $73,000 mark as tariffs hit the global market

Bitcoin could fall toward the $73,000 mark as tariffs hit the global market

Bitcoin price stabilizes around $76,000 at the time of writing on Wednesday after falling 3.59% the previous day. BTC could face volatility as US President Donald Trump announced tariffs go live on Wednesday, with China’s retaliatory duties on Thursday.

More Bitcoin News
Top 3 gainers NEO, Plume and Story: NEO surges despite Trump's tariff firestorm as investors succumb to extreme fear

Top 3 gainers NEO, Plume and Story: NEO surges despite Trump's tariff firestorm as investors succumb to extreme fear

Cryptocurrencies are enduring progressive market carnage from the US President Donald Trump administration's incessant tariffs on its trade partners, with some selected altcoins like NEO, Plume and Story (IP) leading the bullish brigade on Wednesday. 

More Cryptocurrencies News
Cardano Price Forecast: Bears aiming for a yearly low of $0.50 as on-chain data show increasing dormant wallet activity

Cardano Price Forecast: Bears aiming for a yearly low of $0.50 as on-chain data show increasing dormant wallet activity

Cardano (ADA) price hovers around $0.56 on Wednesday after falling 13% the previous week. Token Terminal data shows that ADA’s fee collection has constantly fallen in 2025, indicating lower blockchain usage and activity. 

More Cardano News
Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market

Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market

Bitcoin (BTC) price remains under selling pressure and trades near $84,000 when writing on Friday after a rejection from a key resistance level earlier this week.

Read full analysis
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

BTC

ETH

XRP