As the 2024 BRICS Summit begins in Kazan, Russia, discussions surrounding cryptocurrencies have taken center stage. Lawmakers in Brazil, Russia, India, China, and South Africa are looking into the possibility of Russian miners using Bitcoin in international transactions, with the aim of avoiding the strict sanctions imposed by the United States.
Lawmakers Propose Bitcoin Sale by Russian Miners
This alliance was established as “BRIC” in 2006 by Brazil, Russia, India, and China, and expanded to include South Africa in 2010, becoming BRICS. This alliance aims to bring together influential developing countries to challenge the dominance of rich countries, especially those in North America and Western Europe.
Current discussions all around crypto currency it represents a strategic move to address economic challenges and develop financial independence from Western powers.
According to a report by Bloomberg, top lawmakers are encouraging Russian miners to sell their Bitcoin to international buyers. This transaction would enable consumers to use Bitcoin and other cryptocurrencies to pay for goods from other countries, effectively bypassing Western sanctions that have had a negative impact on the Russian economy.
According to the report, by using Bitcoin and other digital assets, these countries aim to create an alternative financial system that avoids traditional systems that depend on the US dollar and conventional banks.
Richard Wolff, a US economist and senior professor at the University of Massachusetts Amherst, commented on the dynamics, noting that The BRICS alliance it is growing as US influence around the world declines.
Wolf highlighted the failure of US military interventions in Vietnam, Afghanistan, and Iraq, suggesting that this decline is reflected in the political landscape. The economist also stressed that the BRICS countries are not only benefiting political influence but they are also developing economically.
Putin Advocate For Cryptocurrency Adoption
As before report via Bitcoinist, Russian President Vladimir Putin has also spoken about the need for the BRICS countries to use cryptocurrencies and digital currencies in their financial transactions.
The Russian President believes that this change can greatly benefit the economic alliance with other developing countries. However, Putin emphasized the importance of comprehensive innovation regulations to ensure that a strong framework is in place before fully adopting crypto.
In addition to cryptocurrency discussions, BRICS members launched a new payment platform, BRICS Pay, designed to challenge the dominance of the SWIFT financial system.
This blockchain-based platform aims to facilitate cross-border trade between the BRICS nations, providing an alternative approach. financial activities while evading US sanctions.
The move marks an important step in the transformation of financial exchanges within the BRICS, underscoring the alliance’s commitment to promoting economic cooperation and reducing dependence on Western financial infrastructure.
At the time of writing, Bitcoin is trading at $65,845, down 2% over the past 24 hours and seven days.
Featured image from DALL-E, chart from TradingView.com
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