Trump's threat of tariffs for BRICS may strengthen bitcoin's savings role alongside the trading function of the US dollar.
The elected US president Donald Trump has intensified his criticism of BRICS countries, warning of significant economic consequences if they advance plans to create a single currency.
On Saturday, Trump posted on his social platform Truth Social a plan to impose a 100% tariff on BRICS countries if they attempt to undermine the US dollar in international trade.
His statements came amid growing speculation that the economic bloc may consider alternatives to the dollar, such as a single currency or similar mechanisms.
Presenting the proposed efforts as a direct challenge to US financial supremacy, Trump condemned the potential creation of a BRICS common currency.
The elected president wrote:
We demand that these countries commit to not creating a new BRICS currency, and not supporting any other currency to replace the mighty US dollar, otherwise they will face 100% tariffs.
Trump emphasized that any country seeking to diminish the role of the dollar will face economic isolation from the United States.
In response to Trump's position, Anthony Pompliano, a prominent bitcoin advocate, commented on Saturday on the social media platform X about how the tariff issue for BRICS could impact bitcoin. He expressed the opinion:
The future will belong to dollars for transactions and bitcoin for savings.
BRICS countries' efforts to explore a common currency aim to reduce dependence on the US dollar and minimize the impact of Western sanctions. However, these initiatives are complicated by various economic and political conditions among the participating countries.
Instead, the bloc is increasingly focused on boosting trade in local currencies and creating independent financial systems.
Examples of this change include the purchase of Russian oil by the Chinese and Indians using their own currencies and ongoing work to develop a cross-border payment system that bypasses the dollar.
Meanwhile, Trump has radically changed his attitude toward cryptocurrencies, shifting from skepticism to support.
During his 2024 presidential campaign, he promised to position the US as a global leader in the crypto space, proposing a national bitcoin reserve and promising changes in regulation.
He also outlined plans to replace SEC Chairman Gary Gensler with a more crypto-oriented official and discussed the creation of an advisory council on bitcoin and cryptocurrencies.
Moreover, his collections of non-fungible tokens (NFTs) and his family's involvement in launching World Liberty Financial, a cryptocurrency platform, reflect the deepening ties of the Trump brand with the digital asset industry.
