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- The BRICS mission to boycott the US Dollar is gaining massive traction.
- India and Nigeria just expanded this mission with non-dollar funded trade deal.
India and Nigeria, two major parties in the BRICS alliance have reportedly agreed to use local currencies for bilateral trade instead of the U.S. dollar. This decision has left crypto investors wondering what the outcome would be for Bitcoin (BTC), the largest digital asset.
India and Nigeria Signs Trade Agreement
According to reports, the two nations formally inked a trade deal that calls for most payments to be made in local currencies rather than US dollars. The Indian Commerce and Industry Ministry said India aims to strengthen bilateral economic ties with Nigeria.
The BRICS nations comprising Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates have been persuading other developing countries to trade internationally with local currencies. The top three countries aiming to replace the US dollar with their currencies are China, Russia, and India.
However, Nigeria and India have now joined the de-dollarization movement. While India has long been a member of the alliance, Nigeria recently applied to be a member, aligning with the BRICS’ goal to enhance economic ties through local currencies. As revealed in a Crypto News Flash YouTube video, the trade agreement between both countries covers sectors like transportation, energy, and pharmaceuticals.
It is worth mentioning that Nigeria is India’s second-largest trading partner in Africa. Between 2022 and 2023, the two nations’ bilateral trade totaled $11.8 billion. However, their bilateral trade declined to $7.89 billion between 2023 and 2024. Approximately 135 Indian enterprises are now operating in Nigeria, with a cumulative investment of $27 billion. These investments are spread across the manufacturing, consumer products, infrastructure, and services sectors.
Since 2022, the BRICS nations have been seeking additional nations to further the de-dollarization goal.Their efforts are bearing fruit as Crypto News Flash had earlier detailed. The BRICS’ primary objective is to replace the US dollar as the global reserve currency with local currencies.
If BRICS continues to make agreements with additional nations without utilizing the dollar, the US economy will be at risk. In the next few years, this move is anticipated to challenge the dominance of the US dollar.
Reiterating Crypto News Flash’s earlier reports, the BRICS alliance is embracing blockchain technology for its newly devised payment system. Their efforts are focused on creating a competing currency based on digital assets.
Will Bitcoin Benefit?
The possibility of Bitcoin benefitting when countries move away from using the U.S. dollar for bilateral trade adds another dimension to this conversation. Notably, Bitcoin might benefit from this trend as it could be perceived as a more neutral and decentralized alternative.
Moreover, a decline in dependence on local currencies may lead to increasing use of Bitcoin, particularly in places where local currencies are prone to political manipulation.
The potential for BRICS consideration has continued to shape Bitcoin’s price outlook. Per the latest market data, Bitcoin is trading at $62,914, representing a 3.2% increase in the past 24 hours. The trading volume stands at $22 billion, while the market cap stands at $1.2 trillion.
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