BRICS NEW CURRENCY’S EFFECT ON CRYPTO

The primary motivation behind the BRICS currency is to reduce reliance on the U.S. dollar, fostering an independent financial network. This could contribute to de-dollarization, diminishing the dollar’s dominance, which would likely influence global financial dynamics and digital assets.

For cryptocurrencies, the emergence of a BRICS currency could both positively and negatively impact the sector. On the positive side, a new currency outside the traditional U.S.-dominated system could validate alternative currencies and open opportunities for digital assets, particularly if BRICS nations explore blockchain or decentralized technology in their financial networks. This shift could lead to increased interest in crypto assets, potentially boosting their market value, as crypto can serve as a hedge against currency shifts  .

However, the establishment of a BRICS currency might also bring increased regulatory oversight in the cryptocurrency sector. Some BRICS countries already have stringent regulations around crypto (notably China), and a unified approach might intensify this stance, impacting market dynamics and limiting certain aspects of decentralized finance. This scenario could create hurdles for cryptocurrencies within BRICS countries as governments strive to manage monetary policies and control financial stability under a unified currency .

Ultimately, a BRICS currency could shift the geopolitical financial landscape, directly influencing both fiat and crypto markets as the bloc’s regulatory and economic strategies unfold.