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- BRICS member Russia has passed new Digital Financial Assets (DFAs) to help fight the Dollar’s dominance.
- BRICS members are committed to displacing Dollar for international trade.
Members of the BRICS alliance are solidifying their position against the United States Dollar with trade policies that favor the use of other currencies. One of the latest moves in this regard features the signing of a law by Russia to use digital assets for international trade settlements.
Complementing the Pivot BRICS Shift From the USD
Besides the need to bolster trade alliances among member states, one of the primary goals of the BRICS alliance formed by the founding founders of Brazil, Russia, India, China, and South Africa is to stem the US Dollar’s hegemony.
In the past year, there has been a defined shift from these countries on trade settlement. As formerly reported by Crypto News Flash, the likes of China and Saudi Arabia pioneered this shift when both completed a landmark currency swap agreement worth $6.93 billion. There have also been instances of oil trade settlement using alternative currencies drawing on Crypto News Flash’s previous insights.
For Russia, the Digital Financial Assets (DFAs) it just greenlighted will help in settling cross-border transactions and will deliberately boycott the US Dollar. Russia made this gameplay in response to the unlifted sanctions on its economy and financial ecosystem since the war in Ukraine began.
While proponents of the law argue the DFAs are a gamechanger, obvious limitations persist as the country cannot do business with most European powerhouses. Despite this limitation, Russian lawmakers and BRICS policymakers are confident that the United States or Western regulators cannot sanction or halt the circulation of Digital Financial Assets, thus making this asset class the perfect safeguard tool to fight the Dollar’s dominance.
The new law will make Russia’s global trade transactions with other members of BRICS go through a transparent banking system.
Expansion of the Alliance
Earlier reports from Crypto News Flash highlight how new members are joining the BRICS alliance as more nations seek to join the fight to protect their economies from the United States. Among the newly admitted countries are Saudi Arabia, Iran, and Egypt.
As a part of the broader expansion of BRICS is the conversation surrounding the place of Bitcoin (BTC) as an alternative asset per earlier reports from Crypto New Flash. Naturally, BRICS member states like China are anti-Bitcoin with an effective ban on the coin. However, the potency of the asset to stand against censorship typically reverberates to member countries, with an argument of adopting it as a reserve currency.
While this has not been officially passed, some member states like Russia are already exploring the importance of Bitcoin’s mining potential. As an asset that is considered a major hedge against inflation, Bitcoin might prove important to the overall fight against the dominance of the US Dollar.
