As the 2024 BRICS Summit kicks off in Kazan, Russia, discussions around cryptocurrencies are taking center stage. Lawmakers from Brazil, Russia, India, China and South Africa are exploring the potential for Russian miners to leverage Bitcoin in international trade, aiming to circumvent strict sanctions imposed by the United States.
Lawmakers Propose Bitcoin Sale By Russian Miners
Originally formed as “BRIC” in 2006 by Brazil, Russia, India, and China, the coalition expanded to include South Africa in 2010, becoming BRICS. The alliance seeks to unite influential developing countries to challenge the dominance of rich countries, particularly in North America and Western Europe.
The current discussion revolves around crypto currency represents a strategic move to overcome economic challenges and increase the financial independence of Western countries.
According to a report by Bloomberg, top lawmakers are advocating that Russian miners sell their Bitcoins to international buyers. These transactions could allow buyers to use Bitcoin and other cryptocurrencies to pay for imports, effectively circumventing Western sanctions that have a detrimental impact on the Russian economy.
According to the report, by leveraging Bitcoin and other digital assets, these countries aim to create alternative financial pathways that circumvent traditional systems that rely on the US dollar and conventional banking.
Richard Wolff, US economist and professor emeritus at the University of Massachusetts Amherst, commented on the dynamics of this change, stating that BRICS coalition gaining momentum as US global influence wanes.
Wolff highlights the failure of US military interventions in Vietnam, Afghanistan, and Iraq, and argues that this decline in power is reflected in the geopolitical landscape. The economist also stressed that the BRICS countries are not just making a profit political influence but also experienced economic progress.
Putin Supports Cryptocurrency Adoption
As previously reported by Bitcoinist Russian President Vladimir Putin has also been vocal about the need for BRICS countries to adopt cryptocurrencies and digital currencies in their financial transactions.
The Russian President believes that these changes can provide significant benefits to the economic coalition and other developing countries. However, Putin emphasized the importance of building comprehensively regulation to ensure a robust framework is in place before fully adopting crypto.
In addition to discussions regarding cryptocurrencies, BRICS members have launched a new payments platform, BRICS Pay, designed to challenge the dominance of the SWIFT financial system.
This blockchain-based platform aims to facilitate cross-border transactions between BRICS countries, providing an alternative way of carrying out transactions financial operations while avoiding US sanctions.
This initiative marks a significant step towards revolutionizing financial transactions within the BRICS bloc, underscoring the coalition’s commitment to fostering economic cooperation and reducing dependence on Western financial infrastructure.
At the time of writing, Bitcoin is trading at $65,845, down 2% over the last 24 hours and seven days.
Featured image from DALL-E, chart from TradingView.com