The BRICS coalition, consisting of Brazil, Russia, India, China, and South Africa, is intensifying its efforts to reduce reliance on the US dollar in global trade. This development could indirectly benefit Bitcoin (BTC).
Recently, the coalition expanded to include new member nations such as Iran, Egypt, Ethiopia, and the UAE. Together, these countries account for over one-third of the world’s GDP. Discussions are currently underway regarding the establishment of an alternative international payment system that bypasses the dollar.
During a recent meeting, BRICS representatives explored ways to phase out dollar-based systems like SWIFT in favor of settlements conducted through national currencies. While Bitcoin is not expected to become the primary currency for these countries, moving away from the dollar could strengthen Bitcoin’s appeal as noted by Noelle Acheson, author of the “Crypto is Macro Now” newsletter.
Acheson highlighted that a decrease in demand for the dollar in international trade, combined with its increasing supply, may weaken its position. This could enhance Bitcoin’s attractiveness as a hedge against dollar devaluation.
Despite their differing political landscapes, BRICS countries share economic and geopolitical concerns about US influence, which is driving their pursuit of a dollar alternative. According to Acheson, this exploration of alternatives could generate greater interest in Bitcoin as a protective asset valued for its scarcity and insulation from traditional market dependencies.
However, the replacement of the dollar is not an immediate goal, as emphasized by Russian President Vladimir Putin, who stated last week that a common BRICS currency is still a distant possibility. Nevertheless, these actions underscore changing economic realities that could indirectly boost the perceived value of cryptocurrencies like Bitcoin.