With the 2024 BRICS Summit underway in Kazan, Russia, cryptocurrency discussions are being prioritized. Legislators from Brazil, Russia, India, China, and South Africa are assessing the possibility for Russian miners to utilize Bitcoin in international trading, with the intention of circumventing the tough sanctions set by the United States.
Legislators Suggest Bitcoin Sales By Russian Miners
Initially established as “BRIC” in 2006 with Brazil, Russia, India, and China, the group expanded to include South Africa in 2010, evolving into BRICS. This coalition aims to bring together powerful developing countries to contest the dominance of wealthier nations, particularly those located in North America and Western Europe.
The current discourse surrounding cryptocurrency is a strategic initiative aimed at addressing economic hurdles and bolstering financial independence from Western influences.
As reported by Bloomberg, prominent lawmakers are urging Russian miners to sell their Bitcoin to global buyers. These transactions could allow purchasers to use Bitcoin and other digital currencies to pay for imports, effectively bypassing the Western sanctions that have severely affected the Russian economy.
The report indicates that by engaging Bitcoin and other digital currencies, these nations seek to forge an alternative financial route that avoids traditional systems reliant on the US dollar and conventional banking frameworks.
US economist and professor emeritus at the University of Massachusetts Amherst, Richard Wolff, commented on the evolving dynamics, observing that the BRICS coalition is gaining traction as US global influence diminishes.
Wolff noted the shortcomings of US military actions in Vietnam, Afghanistan, and Iraq, suggesting that this decline is mirrored in the geopolitical environment. The economist stressed that BRICS nations are gaining ground not just in political power but also economically.
Putin Supports Cryptocurrency Adoption
As previously reported by Bitcoinist, Russian President Vladimir Putin has been advocating for BRICS nations to embrace cryptocurrencies and digital currencies in their financial dealings.
The President believes this transition could greatly benefit the economic collaboration among these nations. However, Putin emphasized the necessity of establishing solid regulations to ensure a robust framework prior to fully integrating crypto.
Beyond cryptocurrency discussions, BRICS members have introduced a new payment platform, BRICS Pay, aimed at challenging the supremacy of the SWIFT financial system.
This blockchain-based platform is intended to streamline cross-border transactions among BRICS nations, offering an alternative method for conducting financial operations while sidestepping US sanctions.
This initiative signifies a major advancement towards transforming financial transactions within the BRICS coalition, highlighting their commitment to promoting economic collaboration and reducing reliance on Western financial systems.
As of now, Bitcoin is trading at $65,845, having decreased by 2% over the past 24 hours and seven days.
Featured image from DALL-E, chart from TradingView.com
