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Russian lawmakers are advancing proposals for cryptocurrency utilization in international trade as the BRICS summit commences in Kazan.
The initiative focuses on enabling Russian Bitcoin miners to sell directly to international buyers. This could be a potential shift in how crypto might be used to facilitate cross-border transactions.
BRICS nations seek alternatives to dollar
According to Bloomberg’s reporting, the proposal emerges as BRICS nations seek alternatives to traditional dollar-based financial systems.
Richard Wolff, economist and professor emeritus at the University of Massachusetts Amherst, notes that the BRICS coalition is gaining momentum as U.S. global influence faces challenges.
The economic significance of this development is underscored by BRICS’ expanding influence.
According to Matthew Sigel, head of crypto research at VanEck, the nine-member bloc now represents 26% of the world’s population and 45% of global GDP, matching the G7’s economic footprint while representing a significantly larger population share.
As the BRICS Summit Kicks Off, Top Lawmakes Are Pushing the Idea that Russian Miners Could Sell Their #Bitcoin to International Buyers, Who Would Use BTC and Other Crypto to Pay for Imports, Effectively Bypassing Western Sanctions.
— matthew sigel, recovering CFA (@matthew_sigel) October 23, 2024
A key development in this direction is the partnership announcement between Russia’s BitRiver and the Russian Direct Investment Fund (RDIF) for a BRICS-wide Bitcoin mining initiative.
This collaboration suggests a coordinated approach to cryptocurrency infrastructure development across BRICS nations.
The summit, which Brazil’s President Lula da Silva will join virtually due to health concerns, comes at a time when BRICS nations are actively exploring alternatives to traditional financial systems.
Wolff points to broader geopolitical shifts, including U.S. challenges in various regions, as context for these developments.
This initiative represents a potential shift in international trade dynamics, particularly for nations facing Western sanctions. The proposal suggests that cryptocurrencies could provide an alternative payment mechanism for import transactions.
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