- Elon Musk has shared his views on why BRICS nations and the ASEAN bloc of nations are seeking to ditch the US Dollar.
- Musk has termed it as a serious issue arising from the US government’s excessive spending as well as heavy-handedness.
Elon Musk has in a post on X (formerly Twitter) shared his views on why countries are increasingly ditching the US Dollar. The owner of X and the world’s richest person was commenting on a post by a market analyst who says that the US is losing its reserve currency status.
Terming the development a serious issue, Musk gave his reason for the ditching of the dollar as the US policy being too heavy-handed, encouraging countries to ditch the dollar. In a separate post, the entrepreneur added that this is combined with excess government spending. This, in his view, forces other countries to absorb a significant part of its inflation.
The world has witnessed a significant global shift in the financial sector. Spearheaded by the BRICS bloc, more and more countries are beginning to shift their alliance from the West. Initially made up of Brazil, Russia, India, China, and South Africa, the bloc is made up of fast-growing economies that are predicted will collectively dominate the global economy by 2050. On top of their agenda, is ditching the US Dollar which they describe as a vulnerability in the global financial system.
In the recently concluded BRICS summit held in South Africa, there was speculation that the bloc would launch a common currency to challenge the dollar. However, this was not successful but the bloc confirmed plans to increase their payment options through local currencies and reduce their dependence on the dollar. Experts predict that the alliance which now constitutes 6 new countries including Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates will launch a common currency in the 2024 summit to be hosted by Russia.
Following the summit, a few weeks ago, an intergovernmental organization of ten Southeast Asian countries including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam announced plans to ditch the US Dollar and put forward their local currencies for global trade.
Can Bitcoin (BTC) Replace the US Dollar?
In 2023, more than 21 countries have revealed plans to ditch the US Dollar, and even more, continue to highlight the challenges of having to rely on the dollar for global trade and as a reserve currency.
Read More: Farewell, USD: Bitcoin Joins 21 Nations, BRICS, and ASEAN in Abandoning the U.S. Dollar
It is clear that the dollar is losing its status and living under borrowed time until the world can back a better alternative.
Undoubtedly, all attributes that the dollar has been losing are inherent in Bitcoin (BTC). For starters, unlike the dollar which is printed out of thin air, Bitcoin is deflationary with a limited supply of 21 million BTC. As supply falls, this will strengthen the price of Bitcoin.
Decentralized, the digital asset is safe from manipulation by any government or financial institution. In addition, the digital asset has gained global recognition and acceptance.
