The Rise of BRICS Nations and Its Implications for Crypto and the US Dollar
As the world moves towards a new economic order, the crypto industry is set to be impacted in significant ways.
The COVID-19 pandemic has hit the US economy hard, and many believe it will lead to the “Fall of the United States of America.” In response, investors have turned to decentralized finance (DeFi) for financial relief and survival.
A new economic power emerges: BRICS
The rise of BRICS nations (Brazil, Russia, India, China, and South Africa) is changing the direction of digital assets. These nations have experienced significant economic and political power growth, raising questions about the dollar’s role in the global economy.
The BRICS nations have abandoned using the USD for trade in favor of the Chinese Yuan or their own currency. They have also increased their trade and economic cooperation, which has helped to increase their collective economic power.
The shift away from the dollar as the world’s reserve currency is a crucial factor driving the recent conversation. The BRICS countries’ efforts to reduce their reliance on the dollar have resulted in a drop in demand for the currency.
Additionally, the BRICS nations have made significant strides in the crypto industry. China has launched its digital yuan, India is investigating the possibility of launching its CBDC.
The impact of the BRICS breakout on the United States
The US dollar’s status as the world’s reserve currency has allowed the country to finance its massive trade deficits and government debt at low-interest rates.
If the demand for the US dollar were to decline, it could lead to higher interest rates and inflation, harming the US economy.
At the current speed and global developments, only time and patience can tell the direction in which the new world order will unfold. One thing is certain: decentralized finance, which is beyond the control of governments, will be a most welcome savior.
The rise of crypto in the new marketplace
The rise of the BRICS nations and the decline in the demand for the US dollar have significant consequences for the crypto industry. Decentralized finance, which is not controlled by governments, will be a much-needed haven in the new marketplace.
However, the increased government crackdown on cryptocurrencies raises concerns about how US crypto investors will survive.
READ MORE: The State of the Crypto Industry: An Analysis of Operation Choke Point 2.0 and U.S. Regulation
The future of crypto in the “New World Order”
The current trade situation with the US dollar and the rise of the BRICS nations can play out in several ways. The world has witnessed significant downturns in the last two years, yet Bitcoin has stood in defiance of every hurdle.
The rise of the BRICS nations and the decline in the demand for the US dollar could result in a surge in BTC and other cryptocurrencies.
Final thoughts
It’s never too late to jump on the crypto bandwagon, but it’s important to be cautious and informed.
The world might be moving towards a new economic order, and the rise of the BRICS nations will significantly impact the crypto industry. Decentralized finance will be a much-needed savior in the new marketplace. Still, the increased government crackdown on cryptocurrencies raises concerns about the future of US crypto investors.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
