Can BRICS Challenge the U.S. Dollar? The Role of Blockchain in a New Economic Era

Blockchain

Over the years, the possibility of BRICS nations (Brazil, Russia, India, China, and South Africa) challenging the global dominance of the U.S. dollar has sparked heated debates. Once dismissed as a loose collection of economies with little influence, BRICS now commands 35% of global GDP and continues to grow. With the recent inclusion of Indonesia, this coalition is expanding its influence and reshaping global economic dynamics.

No Need for a BRICS Digital Currency Yet

At this year’s BRICS Summit in Kazan, Russia, the idea of launching a BRICS digital currency was floated but deemed “premature” by Russian President Vladimir Putin. Instead, the bloc committed to reducing reliance on the U.S. dollar by trading in national currencies. While a BRICS currency might become a reality in the future, China’s economic dominance within the group suggests it could leverage the Chinese Yuan (RMB) to challenge the U.S. dollar’s role as a global reserve currency.

Unlike Japan’s experience with the 1985 Plaza Accord—when its yen appreciated significantly, hurting exports—China is in a stronger position. With a robust domestic consumption strategy and less dependence on U.S. exports, Beijing could lead a monetary shift within BRICS. This could involve recycling trade surpluses into Chinese assets, reducing the dollar’s dominance over trade representing 35% of global GDP.

Blockchain: A Path to Global Free Trade and Peace

While a direct challenge to the U.S. dollar may trigger economic turbulence, blockchain technology offers an alternative path—supercharged global free trade. Over the past few decades, globalization has fostered unprecedented prosperity, but growing geopolitical tensions threaten this progress. Blockchain could bridge this gap, enabling secure, efficient, and transparent cross-border transactions.

Scalable blockchains like BSV, capable of handling millions of transactions per second, can revolutionize international trade. They offer solutions for payment systems, supply chains, dispute resolution, and regulatory compliance. By making trade trustless and cost-effective, blockchain can help nations trade more freely, fostering economic growth and reducing friction.

A Call for Cooperation

For blockchain to reach its full potential, political leaders must prioritize cooperation over rivalry. Mutual prosperity benefits everyone, and the use of blockchain in trade and finance could expand global wealth. By embracing scalable, regulation-compliant blockchains capable of asset tokenization, countries can modernize international commerce and reduce economic inequalities.

The world faces a choice: continue the fight for dominance or collaborate for shared prosperity. Blockchain technology holds the key to creating a more interconnected and equitable economic system. Whether global leaders embrace this opportunity remains to be seen, but the potential for a brighter, more cooperative future is within reach.

bitcoin
Bitcoin (BTC) $ 95,917.70
ethereum
Ethereum (ETH) $ 2,609.55
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 2.41
solana
Solana (SOL) $ 195.60
bnb
BNB (BNB) $ 632.31
usd-coin
USDC (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.253350
cardano
Cardano (ADA) $ 0.766642
staked-ether
Lido Staked Ether (STETH) $ 2,607.31
tron
TRON (TRX) $ 0.238450
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 95,824.67
chainlink
Chainlink (LINK) $ 18.57
wrapped-steth
Wrapped stETH (WSTETH) $ 3,111.24
avalanche-2
Avalanche (AVAX) $ 25.18
sui
Sui (SUI) $ 3.27
stellar
Stellar (XLM) $ 0.316231
the-open-network
Toncoin (TON) $ 3.72
shiba-inu
Shiba Inu (SHIB) $ 0.000016
leo-token
LEO Token (LEO) $ 9.83
litecoin
Litecoin (LTC) $ 117.34
hedera-hashgraph
Hedera (HBAR) $ 0.224497
usds
USDS (USDS) $ 1.00
hyperliquid
Hyperliquid (HYPE) $ 23.37
weth
WETH (WETH) $ 2,608.60
bitget-token
Bitget Token (BGB) $ 6.20
polkadot
Polkadot (DOT) $ 4.83
bitcoin-cash
Bitcoin Cash (BCH) $ 330.44
ethena-usde
Ethena USDe (USDE) $ 1.00
mantra-dao
MANTRA (OM) $ 5.87
uniswap
Uniswap (UNI) $ 9.40
wrapped-eeth
Wrapped eETH (WEETH) $ 2,763.52
ondo-finance
Ondo (ONDO) $ 1.33
monero
Monero (XMR) $ 223.49
pepe
Pepe (PEPE) $ 0.000010
whitebit
WhiteBIT Coin (WBT) $ 27.38
near
NEAR Protocol (NEAR) $ 3.22
aave
Aave (AAVE) $ 242.26
dai
Dai (DAI) $ 0.999993
mantle
Mantle (MNT) $ 1.02
internet-computer
Internet Computer (ICP) $ 7.09
aptos
Aptos (APT) $ 5.90
susds
sUSDS (SUSDS) $ 1.04
bittensor
Bittensor (TAO) $ 394.63
official-trump
Official Trump (TRUMP) $ 15.36
ethereum-classic
Ethereum Classic (ETC) $ 20.23
okb
OKB (OKB) $ 50.03
gatechain-token
Gate (GT) $ 22.18
vechain
VeChain (VET) $ 0.033016
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.308381