The BRICS alliance has resolved to end membership for the current year, following an eventful year. However, what are the plans for Bitcoin and cryptocurrency?
The BRICS alliance has agreed to terminate the block’s membership in 2024. The announcement was made during the ongoing BRICS Summit in Kazan, Russia.
The alliance, which was initially composed of Brazil, Russia, India, China, and South Africa, is currently investigating methods to break free from the hegemony of the US Dollar. For this reason, the discourse has previously focused on stablecoin and Bitcoin (BTC).
Admittance and Membership Structure of the BRICS
The alliance has experienced a significant expansion in the past year, in addition to its primary founding members. The coalition was officially joined by the United Arab Emirates (UAE), Iran, Egypt, and Ethiopia earlier this year. The organization includes several partner countries in addition to its entire membership.
This includes Nigeria, Turkey, Malaysia, and Thailand, among others. As previously reported by Coingape, Turkey announced its intention to become a member of the organization in June. There are discussions regarding the bloc’s priorities for the remainder of the year in light of the recent update prohibiting new memberships.
The BRICS agenda is clearly defined and contingent upon enhancing economic and trade relations. The group aspires to accomplish this by rejecting the Western financial system centered on the US Dollar.
Several countries in the bloc, particularly Iran and Russia, are highly motivated by this agenda. This is due to the sanctions imposed on both countries by the United States government and its European allies.
Some countries have conducted foreign trade without using the US Dollar as the settlement currency to fulfill their agenda. For example, India conducted its inaugural oil trade with the United Arab Emirates in the Rupee last year, thereby circumventing the Dollar.
What is the status of Bitcoin and cryptocurrency?
Discussions have arisen regarding the potential integration of Bitcoin and crypto into the current plans to diminish the significance of the Dollar. In a previous report, Coingape suggested that Russia could circumvent Western sanctions by utilizing Bitcoin.
Although there has been no official confirmation that Bitcoin will be included in the BRICS bloc’s overarching objectives, stablecoins may have an impact. In conclusion, Russian President Vladimir Putin observed that the discourse regarding the alliance’s national unifying currency is premature.
Currently, the organization is investigating a payment system that will benefit its cross-border settlement agenda by incorporating blockchain technology.
