The United States is closely watching developments within the BRICS group regarding a potential joint cryptocurrency. According to an Indian expert on international relations, Washington is fully aware of BRICS’ efforts to reduce dependence on the U.S. dollar. However, there are no active countermeasures from the U.S. at this time.
BRICS and the Pursuit of Financial Autonomy
BRICS, which includes major emerging economies such as China, Russia, and India, is taking increasing steps toward financial independence and reducing the role of the dollar in international trade.
Discussions within BRICS about a shared currency or the increased use of national currencies have been accelerated by geopolitical tensions and sanctions policies. Russia and China, in particular, have long advocated for an alternative financial system less reliant on the U.S. dollar.
India, however, takes a more cautious stance. Indian Foreign Minister Subrahmanyam Jaishankar recently emphasized that “India has never been an advocate of complete dedollarization.”
Former U.S. President Donald Trump has also spoken out against these plans. He recently proposed imposing 100% tariffs on BRICS nations if they decide to introduce their own currency or completely abandon the U.S. dollar.
Despite diverging views within BRICS, the bloc is already taking concrete steps to conduct more trade in local currencies. This initiative aims to reduce transaction costs and protect BRICS economies from dollar volatility.
U.S. Response
According to Subhashish Banerjee, an Indian expert on international relations, the U.S. is closely monitoring developments within BRICS. In an interview with the Russian news agency Tass, he stated that while discussions about a BRICS currency may be exaggerated, the movement toward reducing dollar dependency sends a serious message.
Sergey Ryabkov, Russia’s BRICS representative, stressed that the bloc’s goal is not to fully replace the dollar but rather to decrease dependence on the U.S. financial system. Various bilateral agreements among BRICS countries further reinforce this objective.
BRICS Expands and Increases Global Influence
The BRICS group recently expanded, adding Egypt, Iran, the UAE, Ethiopia, and Indonesia. Additionally, the bloc is strengthening cooperation with other emerging economies.
This expansion is increasing BRICS’ global influence and raising concerns in Washington. The ambition to create an alternative financial system that is less dependent on the dollar could, in the long run, shift the balance of power in the global economy.
BRICS nations now representing approximately 45% of the world’s population and 35% of global GDP based on purchasing power parity.
Nevertheless, the likelihood of a unified BRICS currency remains uncertain for now.
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