HomeNewsBRICS Nations Analyze Bitcoin's Behavior as Chinese Yuan Takes a Hit

BRICS Nations Analyze Bitcoin’s Behavior as Chinese Yuan Takes a Hit

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  • The BRICS alliance, potentially expanding to BRICS+, gains momentum as 41 countries express interest in adopting its new currency, marking a significant shift away from US dollar dominance.
  • China’s yuan, a significant component of BRICS’ monetary system, faces a downturn, potentially impacting the development of BRICS’ own currency and prompting a need for financial recalibration.

The global economic landscape is witnessing an unprecedented transformation. As we approach the upcoming BRICS summit in August, the BRICS alliance, composed of Brazil, Russia, India, China, and South Africa, could soon morph into BRICS+ as 41 nations express readiness to embrace the group’s proposed new currency. This potential expansion signals a trend towards diminishing US dollar dominance, triggering a pivotal shift in the balance of global economic power.

The Rise of BRICS+ and a New Currency

From Asia, Africa, and Eastern Europe, the countries indicating their willingness to join the BRICS alliance range from Afghanistan and Algeria to Zimbabwe. The total number has grown from 19 in April to 41 by the end of June, demonstrating a notable readiness to pivot away from the US dollar.

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France, a traditionally western-aligned nation, has also expressed interest in attending the upcoming BRICS summit in South Africa, further evidencing the growing influence of this emerging economic bloc. Even as some African nations remain cautiously observant, Kenya, for one, has called for a switch from the US dollar to native currencies for intra-continental trade.

The Challenge of the Depreciating Yuan

As the expansion of BRICS into BRICS+ takes shape, the Chinese yuan’s significant depreciation cannot be overlooked. This decline sends a ripple of concern through the BRICS nations, raising pressing questions about the structure of the prospective alternative currency.

Financial experts suggest that any BRICS currency would likely depend heavily on the Chinese yuan, with some speculating potential pegging to the currency. With the yuan’s current downward trajectory, these plans may require meticulous reconsideration. The Chinese Central Bank, in response, pledges to adopt measures to stabilize the yuan and support the broader economy.

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The BRICS++ Concept: An Open-Ended Global Platform

The shift in alliances does not stop at BRICS+. The concept of BRICS++, encompassing developing and developed economies and their institutions, is being debated as the next logical evolution. This ambitious platform could provide reciprocal benefits for western economies and further drive global economic growth.

Potential BRICS++ criteria could mirror those used in international organizations like the World Trade Organization (WTO) or the International Monetary Fund (IMF). Principles like reciprocity, depoliticization of discussions, and an economic/pragmatic agenda could underpin the participation of developed economies.

With the center of global economic gravity shifting towards the Global South, the roles of BRICS, BRICS+, and eventually BRICS++ will grow increasingly crucial. These new platforms could serve as a parallel or alternative track to global institutions or forums, reflecting the rising prominence of the developing world.

As this shift transpires, it becomes apparent that inclusive and open-ended platforms could take the lead in the global economy. BRICS++ represents the potential for a novel kind of international alliance, veering away from a history aimed at global domination towards a collaborative


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Brian Johnson
Brian Johnson
A dedicated Bitcoin journalist passionate about uncovering the latest trends, developments, and innovations in the world of cryptocurrency, while delivering engaging and well-researched articles to inform and educate readers on the dynamic digital finance landscape.
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