Two powerful forces, BRICS and Bitcoin, are emerging as potential game-changers that could reshape the international monetary system. The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, represents a formidable coalition of major emerging economies that have joined forces to challenge the existing economic order.
On the other hand, Bitcoin, the pioneering crypto, has been gaining widespread acceptance and attention as a decentralized digital currency that operates outside traditional banking systems. The synergy between BRICS and Bitcoin is garnering attention as a potential duo that could disrupt the dominance of the U.S. dollar in the global financial arena.
BRICS and Bitcoin set to dominate trade in 2024
In the midst of a larger global transition away from the preeminent currency, it is anticipated that both BRICS and Bitcoin will significantly undermine the US dollar in 2024. Morgan Stanley, a reputable financial services firm, predicts that the digital currency and the alliance will significantly contribute to the dollar’s depreciation this year.
Executive Director and Head of Digital Asset Markets at Morgan Stanley, Andrew Peel, discussed the potential hazards the dollar may encounter this year. He emphasized both digital asset markets and intergovernmental organizations. As a result, Bitcoin and BRICS collectively constitute the preeminent global threat to the dollar.
Over the course of the previous year, the emergence of BRICS has constituted a preeminent geopolitical phenomenon. Undoubtedly, the bloc has experienced growth since its inception in 2024. More precisely, it is tripling in size in order to showcase some extraordinarily prominent economic alliances.
At the time of writing, Bitcoin (BTC) is worth $41,767.82, up 0.1% from an hour ago and 1.5% from yesterday. The value of BTC today is 0.4% greater than it was seven days ago. In the last 24 hours, the total volume of Bitcoin transactions was $16,162,238,583.
The global crypto market cap is now $1.69 trillion, up 1.57% in the last 24 hours and 55.36% in the previous year. As of today, Bitcoin has a market capitalization of $819 billion, reflecting a 48.44% crypto market dominance. Meanwhile, stablecoins’ market capitalization is $136 billion, accounting for 8.07% of the overall crypto market capitalization.
Concurrently, the digital asset industry has experienced tremendous growth. In particular, Bitcoin has witnessed the initial authorization of eleven Spot Bitcoin ETFs. The landmark US Securities and Exchange Commission (SEC) ruling reversed a decade-long trend. This subsequently distinguished the asset from its peers and steered it down a renewed mainstream trajectory.
At this time, BRICS and Bitcoin have been identified by Morgan Stanley as factors that will undermine the US dollar in 2024. As the crypto and the alliance have flourished, the dollar has encountered difficulties, particularly due to the diversification initiatives urged by central banks worldwide.
Florida’s Marco Rubio argues that BRICS expansion undermines Western sanctions
Marco Rubio, a Florida senator, recognized that the ongoing proliferation of BRICS could impede the capacity to impose sanctions on other countries. According to Rubio, the inclusion of Saudi Arabia, the United Arab Emirates, Ethiopia, Egypt, and Iran in BRICS has bolstered the organization’s “attractiveness as an alternative to the American and European-led financial system.”
Considering purchasing power parity-adjusted gross domestic product (GDP), the BRICS group, which was established in 2009, has amassed more than the G7 to become one of the most influential blocs globally.
Javier Milei, an Argentine libertarian who recently declined an invitation to join BRICS, has demonstrated his allegiance to the United States and Israel, as noted by Rubio.
If current trends continue, it will become harder and harder for the United States to prevent international violence and oppression through sanctions […] Milei is taking the right steps to be a friend to the United States. The Biden Administration would do well to reciprocate that, because friends are few and far between these days.
Florida Senator Marco Rubio
Rubio urges the U.S. and Biden administrations to intervene on behalf of the Argentine government before international institutions such as the International Monetary Fund (IMF). He also advises that Argentina be treated seriously as an international partner.
Source: https://www.cryptopolitan.com/brics-bitcoin-set-to-dethrone-dollar-in-2024/