BRICS Move Away from Dollar Could Boost Bitcoin’s Appeal as a Hedge Asset

The BRICS coalition—consisting of Brazil, Russia, India, China, and South Africa—has been ramping up efforts to reduce reliance on the US dollar in global trade, potentially offering indirect benefits to Bitcoin (BTC).

Recently, the group expanded to include new member nations like Iran, Egypt, Ethiopia, and the UAE. Together, they represent over a third of the world’s GDP, and discussions are underway on establishing an alternative international payment system that bypasses the dollar.

In a recent gathering, BRICS representatives explored ways to phase out dollar-based systems like SWIFT in favor of payments settled through national currencies. Though Bitcoin isn’t expected to become the primary currency for these countries, shifting away from the dollar could bolster Bitcoin’s appeal, notes Noelle Acheson, who writes the “Crypto is Macro Now” newsletter.

Acheson pointed out that less demand for the dollar in international trade, coupled with its growing supply, may weaken its position, thus adding to Bitcoin’s allure as a hedge against dollar devaluation.

Despite their different political landscapes, BRICS countries share economic and geopolitical concerns about U.S. influence, which drives their push for a dollar alternative. According to Acheson, this exploration of alternatives may increase interest in Bitcoin as a protective asset, valued by proponents for its scarcity and insulation from traditional market dependencies.

However, replacing the dollar isn’t a near-term goal, as emphasized by Russian President Vladimir Putin, who stated last week that a common BRICS currency is still a distant possibility. Nonetheless, these moves underscore shifting economic realities that could indirectly boost the perceived value of cryptocurrencies like Bitcoin.