BRICS working on dollar alternative - Does crypto play a role?
Crypto might play a role, but not as the primary choice. β While some commenters see potential for crypto to become a preferred choice due to its borderless transactions and as a way for BRICS to reduce dollar-dependence, a notable number argue that BRICS is more focused on their own currencies or possible common units of account. There is also skepticism about BRICS currencies replacing the dollar due to concerns about corruption and stability.
56% | 84 | |
31% | 46 | Mastodon |
12% | 18 | Bluesky |
1% | 1 | 4Chan |
1% | 1 | Hacker News |
45% | Negative |
37% | Neutral |
17% | Positive |
58% | π± Fear |
24% | π Joy |
16% | π‘ Anger |
2% | π― Surprise |
0% | π’ Sadness |
0% | π₯° Love |
BRICS' Plans and Crypto: Commenters are divided about whether cryptocurrencies will play a significant role in BRICS' plans for a dollar alternative. Some see potential for crypto to be the preferred choice due to its borderless transactions and as a means to reduce dollar-dependence, while others believe that BRICS countries might focus on their own currencies or a potential common currency. This difference in opinions hints at uncertainty regarding how BRICS perceives and will utilize crypto in the future.
US Dollar Dominance: A dominant sentiment among skeptics is that the US dollar is not threatened by BRICS and will remain a significant global currency due to global economic structures and the lack of genuine competition. They believe that the current global problem ensures continued support for the US dollar.
Crypto Volatility: While some commenters are optimistic about the potential of cryptocurrencies as a preferred choice, emphasizing their borderless transactions and decentralized nature, others are skeptical due to various reasons like volatility and lack of trust in BRICS governments.
BRICS' Goals: Some commenters stress that one of the primary aims of BRICS is to find an alternative to the USD for conducting international transactions. This is viewed as a crucial step towards achieving economic independence and diversifying trade dynamics.
BRICS Internal Dynamics: Skeptics point out a lack of consensus among BRICS nations regarding what alternative should replace the US dollar for international trade settlement. Differences in interests among BRICS members, like potential reservations about widespread use of the Chinese Yuan, indicate potential challenges in arriving at a unified strategy.
XRP as a Replacement: While discussing potential alternatives to the US dollar, some commenters bring up the cryptocurrency XRP. However, the sentiment leans more towards a general exploration of cryptocurrencies as alternatives rather than specific emphasis on XRP.
Potential Implications of the Shift: Opinions regarding the potential ramifications of BRICS nations shifting away from the dollar and possibly embracing crypto are varied. Some see it as a game-changer that can reshape global trade dynamics, while others express skepticism, citing challenges like corruption, lack of military might, and economic instability.
US Dollar as Reserve Currency: One perspective suggests that BRICS' goal isn't necessarily to replace localized currencies but to challenge the US Dollar's status as a primary reserve currency, emphasizing the geopolitical influence tied to its use.
Timeframe for Significant Change: Some skeptics argue that, while alternate currencies may eventually rise in prominence, it might take a considerably long time (e.g., 100 years) for any significant shift away from the US dollar to occur.
Crypto's Broad Features: Those optimistic about the role of cryptocurrencies often highlight features such as borderless transactions, minimal fees, improved privacy, and global trading without exchange rate fluctuations as reasons for their optimism.