Topic: How will the BRICS currency influence Bitcoin? - page 6. (Read 1303 times)

Argentina is a special case that can't be used to extrapolate to other countries. The radical moves by the country is because of the radical who took power recently in their country who is known to be a "crazy person" (el-loco). He has been doing a lot of other crazy things too like starting to shut down the central bank and dump their local fiat.
His crazy actions even led to a whopping 160% inflation in Argentina!

Both of these countries keep a lot of their economic and nation data confidential. In addition, if the US knew how much gold both of these nations held, they would have no incentive to publish this data either. Why? It might be an indicator that these nations are economically more stable/potentially more powerful than the US. Gold is a key indicator of a nations wealth, and if you think that neither of these nations have near as much/more gold than China/Russia just because the data isn't available, you'd be naive. China have used credit a lot more efficiently than the US or other countries, it is only logical to assume that they'd have been accumulating gold from wherever possible during the era where the US's dominance is becoming increasingly uncertain.

While the information and logic can't be used as a basis for any conclusions, this goes both ways.

To answer point 2, every country lies. I wouldn't be too quick to jump at Russia for being greater liars than every other country...the US as one example, is also built on lies. I don't think there is a measure for which country lies more than another, none are innocent, none are more honest than any other. Some are more obvious in that they lie, though that doesn't mean better liars are lying less.

I would argue that the BRICS currency is similar to the Euro, At least the BRICS currency is shared among a group of countries that are part of international trade. But In fact, in my opinion, it makes a lot of sense to use BTC in international trade. because bitcoin is a secure, decentralized coin, and can be sent anywhere instantly and can be stored offline easily. Why make the effort to start something new regarding BRICS or any other currency?

Bitcoin is already experiencing scarcity and we don't need to trust anyone for that scarcity to be maintained. In conclusion, bitcoin will continue to operate as usual, unaffected by the presence of BRICS, because it is true, as you said, the presence of BRICS is not to compete with bitcoin because the two have very large differences.

its been made perfectly clear many times.. each country involved in brics will have their own CBDC and they will interchange those CBDC using what they call an M-bridge

I don't think countries or governments creating their own digital currency will have much of an effect on Bitcoin, and I also don't think anything will happen to Bitcoin if the demand drops to the extent you're talking about. Also Bitcoin is Decentralized Crypto Currency and on the other hand they will be Government Controlled Digital Currency I think there is a big difference here.

I don't think anything like that will happen, but it could have a positive effect on Bitcoin against the dollar. And there is no question of demand drop, decentralize cryptocurrency with these fiat currencies should not be compared.
I don't think that BRICS countries opt to use Bitcoin for international trade because most of strong of them are already give ban on Bitcoin/cryptocurrency use. And it is already much clear that they making a new currency like the Euro in Europe.

 

In my opinion there is no unity among the BRICS to create their own digital currency. The have a common goal to reduce the international dependency on US Dollar, but no solution on how to achieve it. The problem is that all of the big countries like India, China and Russia want to see their own currency as the new world currency and are not willing to support someone else. Which is why I don't think that any of the digital currencies by BRICS are going to be a competition for Bitcoin. It won't change the demand for Bitcoins as it's still going to be the number one crypto currency that is accept all around the world. Russia is the only country at the moment engaged in a major war and being sanction by most of the western world, what makes the Rubel the least likely currency to reach any international dominance. Also, the west is very cautious with China and their control of the economy and their currency, which leaves India as the only real alternative to create a counterweight to the US Dollar. But India is not in the economic position to create their own stable digital currency that would settle the majority of international trade. The most likely outcome is that the US Dollar will lose more international market share, but at a slow rate and it won't be one currency alone that will take over the market share, rather a rise in bilateral trading between countries directly.

This discussion has been there for decades without implementation, it is not only the second world power states but also the third world powers through ECOWAS and OAU have come together to suggest the idea of one currency.

This is essential in weakening the economic powers of U.S through IMF, world bank, and the world stock market. Dollar being the sole means of exchange in the International market gives the U. S monopoly.

However, the fear of sanction and the U. S has bribed some influential politicians in those countries to thwart the effort.

Therefore , I don't see another currency battling the dollar or a digital coin that will weaken Bitcoin the future. With influential individuals like Elo Musk and others hiding their safe on crypto wallets. Most publicly stolen funds are hidden on crypto wallets without trace.

These influential people wouldn't want the devaluation of their treasures, so they will struggle to stop any attempt against Bitcoin.

Simple question - can anyone confirm gold reserves in Russia and China?
I will answer:
1. China has classified all information about gold reserves, volumes, structure, etc. Therefore, what is publicized is only words.
2. Russia, being a pariah country with a degenerating economy, sells gold and ... constantly lies about everything. From its "greatness" to ... yes yes, gold reserves.

So, I would definitely not use this information as a basis for any conclusions.

reading reports from the BIS (bank of international settlement) and from last years brics summit
they seem to want to move away from one central currency to instead have many state currencies and a bridge network to covert the currencies

things like each brics member has their own CBDC and they connect together with a things called m-bridge

as for the discussions last year there are public stuff like
https://www.ledgerinsights.com/brics-digital-currency-local-currency/

https://www.bis.org/about/bisih/topics/cbdc/mcbdc_bridge.htm

It's an interesting combination of countries...Though we all know which are the two powerhouses, and what their ethos generally is. Control and centralization are a big part of the Chinese and Russian ethos. Using Bitcoin? Unlikely, especially if the US is planning to profit from ETFs and EDX markets (pretty much a US government/corporation sponsored exchange).

I think, since China already have the Digital Yuan and India have a strong developer community in big name projects (like Polygon), the option that makes most sense is that a native cryptocurrency/"stable" blockchain will be created for international trade, with some sort of backing (like Gold, considering China and Russia have a TON of gold in comparison to other nations).

Everything depends on relations between different countries. First BRICS, if they start managing transactions in between them using specific currency then it will operate. However, it will only operate in between them only. This means the market size would be small and wont be expanding anytime soon. This can later cause issues while competing the USD market because we know very well that one is highly recognised throughout the world. So few countries switching to different currency or creating their own doesn't matter a lot. But for the sake of comparison let us say they implement Bitcoin as their currency then also they wont be able to go full scale on it. There are so many thing when two countries transact. There is paper trail, proof generations, taxation and much more that needs to be taken care of. Im not sure this can be done successfully while using highly volatile Bitcoin.

The alliance is full of products and hardly any buyer.
China apart if they archive to broaden their middle class.

This is the main problem of BRICS. It was conceived as a regional economic union, with plans for expansion, but it all ended with manipulations to satisfy or resolve the problems of several countries, and at the expense of other participants. Such an alliance will not last long. It will either exist nominally, or disintegrate, or be transformed into a new union where those countries that tried to use it only for their own selfish purposes will not accept.

Honestly, BRICS are not doing anything that would be beneficial for other nations, that's the trouble with it. Argentina already left, and I am not sure if many would continue if they have trouble with it.

You need to realize, some nations care about their freedom way more than money, like UK for example, they weren't even using Euro, the pound starling that they were using was still there, and they still went out of EU for example, and that brexit did cause them a lot of presidents and a lot of inflation as well and financially a lot of trouble as well. This is why I think BRICS will have a ton of trouble with them eventually, and the foundation has to be quite strong to keep it going, otherwise it will be a failed attempt.

Argentina can be removed from this "bill" And judging by the situation inside BRICS, I do not exclude that in 2024 we will learn about new countries that will leave this union, which has lost its economic sense.

Happy New Year !
May the new year bring peace and tranquility to your families ! And luck will always be with you ! May all your plans be realized and the result will be financial excess !

Only if we are dealing with minor amounts that could happen, minor referring to Bitcoin in circulation.
You are aware that every year a % of money is added? And that it's added towards people who already have money.
Just to secure parts of their Risk capital they have created a demand for a store of value Bitcoin represents.

So, if we believe all the FUD that are being spread... then millions of Dollars worth of bitcoins are being bought and transferred between the countries that are sanctioned by the West. Now, let's say for one moment that they create their own digital currency, then they will have no need to use Bitcoin, so the demand for Bitcoin will then decline.

I do not know if we can believe this and if there are really that much bitcoins being traded by the BRICS countries, but I think it will have a small impact, if some Oligarchs switch to another digital currency.  

The idea of a BRICS currency is still an idea. I don't even think that there is a project about such "BRICS digital currency".
Probably all the BRCIS countries will use their own national currencies(or their own CBDCs) for trading between each other.
The BRICS members will never accept Bitcoin payments for international trading. I don't know where did you come up with this idea?
Even if such "BRICS digital currency" becomes reality, I don't think that it will compete with Bitcoin. BTC is always will be "digital gold", while this BRICS currency will be used mostly for export/import deals and settlements.

As far as I've seen so far only a couple of cases have been in the news about countries using bitcoin for their international trades and even that is on a very small scale which means they aren't affecting the market to begin with and even if they start using BRICS currency replacing dollar, that still doesn't mean ditching bitcoin altogether. Bitcoin is still a good investment to hold.

Considering that it is not yet released, you can't say what it is and is not.
So far they've stated they are planning to release a new "currency".

BTW this is a symbolic note they released last year

brics is not a currency. its more of a commonwealth(group) of nations

their plan is to have their individual CBDC which can be exchanged via an m-bridge

the mbridge is like a forex reserve of quantities of units of each brics nations cbdc to rival the IMF