🌍 BRICS and its new coin: A potential shift in the global financial landscape

Financial Geopolitical Context

The BRICS alliance — Brazil, Russia, India, China, and South Africa — is in the final stages of preparing to introduce a new international currency. This development represents a significant challenge to the historical dominance of the US dollar in global trade and finance.

This initiative arises at a time of transformation in the global economic order. According to recent data, the use of the US dollar in trade transactions between BRICS countries has decreased from 80% in 2015 to 65% in 2024, showing a clear trend towards monetary diversification.

📊 Fundamental Economic Implications

Acceleration of Global De-dollarization

The new BRICS currency seeks to reduce dependence on the US dollar in cross-border trade settlements, particularly in strategic sectors:

• Oil and gas transactions
• Regional trade agreements
• Commodities exchanges

The current international payment system, dominated by SWIFT and the US dollar, has shown geopolitical vulnerabilities that BRICS countries are seeking to mitigate through their own alternatives.

Possible backing in gold or commodities

The available information suggests that the new currency could be linked to tangible assets:

• A partial or total backing in gold reserves
• A weighted basket of strategic commodities
• A combination of the currencies of the member countries

This approach would contrast with the major current world currencies, which operate as fiat currencies without direct backing in physical assets.

Reconfiguration of the international financial system

The implementation of this currency could have significant structural effects:

• Diversification of central bank foreign currency reserves
• Creation of new commercial settlement mechanisms
• Greater monetary autonomy for emerging economies

Countries in Asia, Africa, and Latin America could consider the partial adoption of this alternative system, especially those with strong trade ties to the BRICS bloc.

🔄 Effects on the digital asset ecosystem

Potentially bullish scenario for Bitcoin and altcoins

The fragmentation of the international monetary system could benefit decentralized digital assets:

• Bitcoin could consolidate its position as a neutral and borderless store of value.
• The erosion of trust in traditional fiat currencies could increase interest in cryptoassets.
• Monetary volatility could drive capital towards digital assets as a hedge

Boost for decentralized alternatives

In a scenario of competition between state currencies, decentralized assets could gain relevance:

• Payment systems without intermediaries could become more attractive
• Stablecoins as instruments of stable value in an environment of currency uncertainty
• Decentralized finance platforms as alternatives to traditional financial systems

Greater volatility in multiple asset classes

The transition towards a multipolar monetary system will likely generate:

• Increase in volatility in traditional currency markets
• Fluctuations in the prices of gold and other precious metals
• Capital movements between different asset classes seeking security

🌐 Perspectives on a multipolar financial world

It is important to note that, according to the data available until 2025, progress towards a unified BRICS currency has been gradual. Member states have prioritized:

• The development of interoperable payment systems between their economies
• The increase of trade agreements in local currencies
• The creation of alternative financial infrastructure

While there is still no concrete date for the launch, each advancement represents a step towards a more decentralized international financial system.

The monopoly of the US dollar now faces unprecedented challenges, and prudent investors are diversifying their strategies to adapt to this changing global landscape. 🌍