- BRICS membership is growing, setting a positive pathway for Bitcoin adoption.
- With the bloc no longer poised to build new de-dollarization infrastructure, the chances of BTC adoption remain high.
In a recent CNBC interview, Matthew Sigel, Head of Digital Asset Research at VanEck, said the BRICS bloc will increase the adoption of Bitcoin (BTC). The executive’s comments coincide with a bullish rally for the leading cryptocurrency. Sigel noted that Bitcoin is likely the key to the BRICS’ growing global trade.
BRICS Continues De-dollarization Plans
The BRICS alliance is an intergovernmental organization that initially comprised Brazil, Russia, India, China, and South Africa. As CNF reported, five nations, including Iran, Egypt, Ethiopia, and the United Arab Emirates, joined the alliance this year.
At the just-concluded 2024 Summit, the BRICS reiterated its commitment to shifting away from the U.S. dollar. However, the organization said it will not build new infrastructure to facilitate de-dollarization efforts. That might pave the way for cryptocurrencies like Bitcoin to gain even more relevance.
The crypto market has high hopes for Bitcoin this year. The leading asset reached an all-time high price of $73,750 only three months after firms received ETF approval in January. At the moment, Bitcoin’s price trend looks bullish as it looks to reaffirm the historic ‘Uptober’ boom.
The overall growth in Bitcoin’s prominence could have massive global implications. Notably, Sigel believes the BRICS bloc could adopt Bitcoin for use in global trade. He said Bitcoin will play a critical role in the bloc’s de-dollarization efforts. Moreover, the bloc has previously discussed it at its most recent event, as reported by CNF.
Bitcoin’s Potential Position in the BRICS Bloc
As a decentralized asset, Bitcoin fits the profile of a viable option for members of the BRICS alliance, considering its technical features.
“We think once the election result is finalized, Moody’s is going to downgrade US sovereign debt, and that could be a catalyst for Bitcoin,” Sigel stated. “Bitcoin is a chameleon. It’s hard to predict what it’s correlated with. Because of the 21 million and fixed amount out there, it’s a non-US asset,” he added.
Sigel further described how the BRICS alliance comes into play. He noted that BRICS added six new members at the recent summit, which made its GDP greater than that of the G7 combined. Three of the six new members, Ethiopia, the UAE, and Argentina, use government resources to mine Bitcoin.
Bitcoin’s usage is also increasing internationally as more countries outside the US seek ways to circumvent US fiscal policy.
At press time, BTC’s price is $72,321, up 1.62% in the last 24 hours. The daily trading volume also increased by 10.2% to $52.3 billion. Market participants and analysts anticipate that the leading cryptocurrency will soon reclaim its all-time high.
The recent surge in Bitcoin’s price coincided with growing institutional interest in spot exchange-traded Funds (ETFs). A CoinShares report revealed that $1 billion of new investments flowed into Bitcoin ETFs last week alone.
