Who needs dollar? BRICS nations see Crypto as new world reserve currency!

8/3/2022, 06:59 PM
Who needs dollar? BRICS nations see Crypto as new world reserve currency!
The BRICS nations have called for a new world reserve currency, could this mean a new surge for cryptocurrencies?
The BRICS nations, Brazil, Russia, India, China and South Africa, announced after their last meeting that they are considering working together on a new world reserve currency. This was reported by the Russian news agency Tass.
The new currency is intended to replace the US dollar as the world reserve currency and end its hegemony. One of the arguments often given for a new world reserve currency is the distribution of the world population. In the BRICS nations, there are approximately three billion people, while in the G7 nations, only 11 percent of the world's population lives.

Putin as the driving force behind the new currency. With sanctions and the exclusion from the SWIFT system, Russia is no longer able to use its full economic power. Therefore, it should be clear why Putin is pushing for a new world reserve currency under the influence of the BRICS countries.

The question of creating an international reserve currency based on the currency basket of our countries is currently being examined. We are ready to work openly with all fair partners
- Wladimir Putin
The Americans consider themselves and the dollar to be exceptional. And if they consider themselves exceptional, that means that everyone else must be second-class.

In the current tension-filled market phase, a new system could emerge from the conflict between East and West: cryptocurrencies. El Salvador and the Central African Republic have already turned to Bitcoin and its decentralized promise. Venezuela and Iran are also already trading using cryptocurrencies. After the euro recently fell to a record low, many people may be thinking about the current situation. Even the banks now seem to be reacting to the size of the cryptocurrency market.

Only at the end of June did the Bank for International Settlements (BIS) allow regular banks to hold crypto-assets such as Bitcoin. The total risk of crypto-assets in Group 2 is to be minimized to 1 percent of Tier-1 capital. It is not yet clear to what extent the banks have complied with the request.