Author: Mohamed Allam, Research Analyst; Translated by: 0xjs@Golden Finance

This week marks the BRICS summit, where an important global alliance is expected to be formed. 35 countries have confirmed their attendance, and BRICS will be renamed BRICS+ to reflect its growing membership.

bhX5W5k78Kh4cJ4fEyKulTvYwQ0EfxMWaz4EzXPt.pngEgypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE) will join BRICS+. While this expansion will be gradual, the summit is expected to provide more insights into the potential development of a new global order.

In this article I want to highlight the importance of MBridge, a subject I have discussed before, especially in relation to recent developments in the UAE:

  • MBridge Review: MBridge, also known as the Multi-CBDC Bridge, is a multi-CBDC platform designed to support real-time, peer-to-peer cross-border payments and foreign exchange transactions using CBDCs. The platform is built on the MBridge Ledger blockchain, ensuring compliance with the policies, legal requirements, regulations and governance needs of specific jurisdictions.

  • UAE adopts CBDC: The UAE recently launched its own CBDC with the approval of the central bank, marking a major shift towards blockchain-based infrastructure. This highlights that countries are not only interested in the concept of "cryptocurrency" but also in utilizing blockchain technology. The term "currency" is often misleading because blockchain infrastructure and the convenience of its use are the real goal.

  • Ongoing MBridge testing: As part of ongoing testing of the network, several transactions have been completed on MBridge, including a transfer of AED50 million from the UAE to China. These tests are designed to explore the capabilities of the system, but it is important to note that they are still experimental. These are steps to understand how the network works at scale.

  • Future Challenges: Despite the progress, MBridge still faces significant challenges, especially in terms of liquidity and foreign exchange transfer rates. One possible solution could be to create a unified currency using the CBDCs of a basket of BRICS member countries, but as the network develops, this idea remains speculative.

  • BRICS and the Transformation of Global Finance: As the BRICS countries position themselves to reshape the global financial landscape, the possibility of a decoupling from the dollar is becoming more apparent. Former U.S. President Donald Trump recently said that any country that decoupled from the dollar could face a 100% tariff on goods entering the United States, indicating a growing awareness of changes in global finance.

That being said, it is just a waiting game. The BRICS are coming and the landscape is changing. The BRICS are positioning themselves to potentially create a new global order and the West may not be fully aware of a lot going on behind the scenes.

As I discussed in Death by a Thousand Cuts, all of these small factors could eventually lead to a gradual move away from the U.S. dollar.

The next few years will be crucial for the world, but for those of us in crypto, we’re pretty used to change.

#CBDC