BRICS, a group of five economically-aligned countries consisting of Brazil, Russia, India, China, and South Africa, is reportedly on the verge of a massive expansion. The group aims to build a strategic alliance to challenge the US dollar’s role as the world’s reserve currency, with a total of 24 nations now seeking to join.
This potential alliance includes Saudi Arabia, Iran, Argentina, the United Arab Emirates, Algeria, Egypt, Bahrain, Indonesia, two unnamed East African nations, and one West African nation. This expansion indicates a growing trend of de-dollarization, with countries seeking to reduce their dependence on the US dollar in the global economy.
According to the Russian state-owned news agency Sputnik, BRICS is also in the early stages of developing a new global currency that would circumvent the US dollar. The new form of fiat is likely to be backed by assets such as precious metals, including gold. The potential creation of a new global currency could impact the dominance of the US dollar as a reserve currency and could have significant implications for the global economy.
The potential expansion of BRICS and the development of a new global currency could also impact the adoption and use of cryptocurrencies such as Bitcoin, Ethereum, and Stellar Lumens (XLM), as it could provide increased competition and legitimacy to alternative forms of currency.
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