BRICS membership expansion may pave the way for Bitcoin (BTC) adoption as the bloc continues efforts toward de-dollarization.
In a CNBC interview, VanEck’s Head of Digital Asset Research, Matthew Sigel, predicted that BRICS could drive increased Bitcoin usage. Sigel highlighted Bitcoin’s potential to play a role in the bloc’s global trade strategy, adding that BTC’s adoption might accelerate as BRICS steers away from dollar dependence without building new de-dollarization infrastructure.
Rising Global Influence of BRICS and Bitcoin
Initially comprising Brazil, Russia, India, China, and South Africa, the BRICS alliance welcomed new members in 2024, including Iran, Egypt, Ethiopia, and the UAE. At its recent summit, the alliance reiterated its commitment to de-dollarization, but without investing in new infrastructure for this goal. This stance leaves room for alternative currencies like Bitcoin, aligning with global demand for decentralized assets.
Bitcoin recently hit a record price of $73,750 following January’s ETF approvals and appears to be in a bullish trend. Analysts and investors expect further gains as BTC continues to play an increasingly prominent role in global finance. Sigel noted that the BRICS nations may adopt Bitcoin to facilitate international trade, further enhancing its relevance in bypassing dollar-based fiscal systems.
Bitcoin’s Fit for BRICS’ Financial Ecosystem
As a decentralized digital asset, Bitcoin aligns well with the needs of BRICS countries seeking alternatives to dollar-based trade. Sigel noted that three new BRICS members — Ethiopia, the UAE, and Argentina — are already leveraging government resources for Bitcoin mining, supporting BTC’s role as a viable trade option within the alliance.
Sigel also highlighted that if U.S. sovereign debt ratings are downgraded after the election, Bitcoin could serve as a hedge against dollar volatility. With a fixed supply of 21 million coins, BTC remains distinct from traditional financial assets, potentially becoming more appealing to countries looking to reduce dollar reliance.
The past week saw Bitcoin’s trading volume rise over 10%, reaching $52.3 billion as the price climbed to $72,300. Surging interest in Bitcoin ETFs has contributed to the price increase, with $1 billion of new investments flowing into BTC ETFs, according to a recent CoinShares report. This institutional interest underlines Bitcoin’s potential as a long-term asset, especially in markets seeking alternatives to U.S.-centric financial structures.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
