The boycott of the US Dollar by the BRICS alliance is gaining significant momentum, as India and Nigeria have recently expanded this mission with a non-dollar funded trade deal. These two major parties in the BRICS alliance have agreed to conduct bilateral trade using their local currencies instead of the US dollar. This development has raised questions among crypto investors about the potential impact on Bitcoin (BTC), the largest digital asset.
India and Nigeria have officially signed a trade agreement that stipulates the majority of payments will be made in their respective local currencies, rather than in US dollars. India’s Commerce and Industry Ministry has stated that the goal is to strengthen economic ties between the two countries. The BRICS alliance, consisting of Brazil, Russia, India, China, and South Africa, along with Iran, Egypt, Ethiopia, and the United Arab Emirates, has been actively encouraging other developing nations to engage in international trade using their local currencies. China, Russia, and India are the top three countries seeking to replace the US dollar with their currencies.
Now, Nigeria and India have joined the de-dollarization movement. While India has been a member of the alliance for some time, Nigeria recently applied for membership to align with BRICS’ objective of enhancing economic ties through local currencies. The trade agreement between the two countries covers sectors such as transportation, energy, and pharmaceuticals, as highlighted in a Crypto News Flash YouTube video.
It is worth noting that Nigeria is India’s second-largest trading partner in Africa. Bilateral trade between the two nations totaled $11.8 billion between 2022 and 2023, but declined to $7.89 billion between 2023 and 2024. Currently, approximately 135 Indian enterprises are operating in Nigeria, with a total investment of $27 billion. These investments are spread across various sectors, including manufacturing, consumer products, infrastructure, and services.
Since 2022, the BRICS alliance has been actively seeking additional nations to further its de-dollarization goal. Their efforts have been successful, as previously reported by Crypto News Flash. The primary objective of BRICS is to replace the US dollar as the global reserve currency with local currencies.
If BRICS continues to make agreements with more nations without involving the US dollar, it poses a risk to the US economy. This move is expected to challenge the dominance of the US dollar in the coming years.
As previously reported by Crypto News Flash, the BRICS alliance is embracing blockchain technology for its newly developed payment system. Their focus is on creating a competing currency based on digital assets.
The potential benefit for Bitcoin arises from countries moving away from the US dollar for bilateral trade, adding another dimension to the conversation. Bitcoin may benefit from this trend, as it could be seen as a more neutral and decentralized alternative. Furthermore, a decrease in reliance on local currencies may lead to increased use of Bitcoin, especially in places where local currencies are susceptible to political manipulation.
The possibility of BRICS considering Bitcoin has continued to shape its price outlook. Currently, Bitcoin is trading at $62,914, which represents a 3.2% increase in the past 24 hours. The trading volume stands at $22 billion, with a market cap of $1.2 trillion.
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