New currency from BRICS countries

[Gallar]

Couple of hours ago there is in news on Twitter saying BRICS countries (Brazil, Russia, India, China, South Africa) are developing a new currency. It was mentioned by State Duma Deputy Chairmen btw.

As I can see all these things to manipulate BTC right? What are your thoughts about this?

The news is true.
But all the plans that will be carried out by the BRICS are related to the creation of a new currency that will be issued by these countries. It all has nothing to do with the world of crypto (bitcoin) and there will be no impact whatsoever on bitcoin or other crypto. Because, all the plans for making the new currency are clear. That these countries wanted to get out of the zone of using the dollar, or to be more precise, they did not want to continue to use the dollar as a tool for bilateral transactions and therefore it was decided to create a new currency to replace it.

So it's clear, all the news about the BRICS and its new currency has nothing to do with bitcoin or crypto. Due to the new money creation news associated with the BRICS member countries, it is absolutely all about dedollarization and not to manipulate the world of cryptocurrencies like bitcoin.
And if you want to read deeper news about this, you can try visiting this news site.

Source: https://www.cnbcindonesia.com/news/20230711093901-4-453122/dedolarisasi-panas-tergulung-form-mata-uang-baru-brics/amp

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[Pierre 2]

I was reading about this in many news websites, I was actually thinking that its exeggerated/fake news but it even hits bitcointalk, I guess its true now? I think this can deeply effect future of financial markets because BRICS countries are very very populated and their economies are very big. Their specific currency could become world's third important currency in future maybe passing Pound. But I don't think it will cause massive dedollarization soon. Financial relations are all executed through American Dollars for decades.

[DrBeer]

....
Breaking USD dominance is not easy as it has maintained that position for the past 100 years, but not impossible. Nothing lasts forever, the fact that many countries have eliminated the dollar in international trade in recent years is showing that the dollar is gradually losing its position.

Tell me please - what is the value and essence of the goal of "breaking the dollar" ? What and why are you trying to achieve ? Any action always has a goal, and there is an understanding of the goal - the benefits or advantages of achieving it.
Or simplified:
What is wrong (specific examples, and arguments) when the dollar is strong and is the currency of the world economy.
What becomes good when someone, as you put it, "breaks the dominance of the dollar" ?
Oh, and one more thing - I'm pretty sure that "dollar domination" has a very good reason. Could you please explain more - what in your understanding would be the criteria for "domination" of another currency?  And let's try to determine - who can take over this domination ? Believe me - we are waiting for a lot of interesting discoveries about the world economy !

So please tell me why the US always defies all tricks to maintain the position of USD? What is their goal in maintaining USD dominance? What's wrong with other coins trying to surpass USD and replace it? And if you think it's strong enough, why should you worry when so many other currencies are trying to break that dominance? Like bitcoin dominance, why there are thousands of altcoins trying to topple it, but most investors never worry about it?

There are many interesting things waiting for us, why don't we wait for time to answer them all? Why are we always trying to prove ourselves right?

Why don't you answer my question first and then I'll answer yours ?  Because it's not nice to have a dialog like this, going away from answering a question and asking your own Let's stick to the logic of dialog. And so - I am waiting for your answer. Preferably reasoned.

Regarding "let's wait" and "Why do we always try to prove ourselves right" - there is such a concept as dialog, exchange of opinions. This is exactly it Based on experience and knowledge, some events are possible to model and predict some things I can in advance and refute erroneous opinions...

By the way, you already have an erroneous opinion - "the fact that many countries have excluded the dollar from international trade". This is your erroneous opinion based on incorrect data or distorted information. Would you like me to prove it? Easy - give me a list of countries you mentioned in this "fact" ?

[Argoo]

The 15th BRICS summit is going to be very interesting which will be held on 22 – 24 August (about a month from now) and some are saying the BRICS new currency will be revealed then. This could potentially have a significant effect on the ongoing dedollarisation around the globe.

This summit of the BRICS countries still arouses a very lively interest in that South Africa is the host country and Putin should be present as president of Russia. Now passions are running high as South Africa is a member of the International Criminal Court and is obliged to comply with an arrest warrant issued by this court against Putin. In South Africa, they are still looking for options on how to get out of this delicate situation.

Nevertheless, in relation to the new currency of the BRICS countries, even among the members of this union there is no single vision of what kind of currency it could be. Therefore, in this matter, I do not expect any sensations. In any case, it will be another type of fiat and the appearance of the cryptocurrency will not be affected.

[MusaMohamed]

As you correctly pointed out, this is a gradual move where every country goes through the dedollarisation process

The 15th BRICS summit is going to be very interesting which will be held on 22 – 24 August (about a month from now) and some are saying the BRICS new currency will be revealed then. This could potentially have a significant effect on the ongoing dedollarisation around the globe.

I agree that a more decentralization of global currencies, it will be better and less shocks from any big change in the USA. and US dollar. However, new currency from multilateral union will have many challenge to increase and maintain their power as well as competitiveness in global economy.

In 2022, The Euro currency lost its parity with the US. dollar is example. BRICS currency will have same or even bigger challenge because it is a newborn currency and we have to think BRICS are stronger then the Euro zone or weaker.

[Wend]

As you correctly pointed out, this is a gradual move where every country goes through the dedollarisation process

The 15th BRICS summit is going to be very interesting which will be held on 22 – 24 August (about a month from now) and some are saying the BRICS new currency will be revealed then. This could potentially have a significant effect on the ongoing dedollarisation around the globe.

I agree that a more decentralization of global currencies, it will be better and less shocks from any big change in the USA. and US dollar. However, new currency from multilateral union will have many challenge to increase and maintain their power as well as competitiveness in global economy.

In 2022, The Euro currency lost its parity with the US. dollar is example. BRICS currency will have same or even bigger challenge because it is a newborn currency and we have to think BRICS are stronger then the Euro zone or weaker.

Like bitcoin, when it is just a new product, there will always be a lot of challenges to face, but as long as it has real potential, it will overcome them all. The new BRICS currency will face many difficulties at first, but if it has the potential and strength, it can completely have a place in the international market. The USD and the Euro have both gone through those challenges before reaching where they are today, so everything needs to be challenged.

[DrBeer]

The 15th BRICS summit is going to be very interesting which will be held on 22 – 24 August (about a month from now) and some are saying the BRICS new currency will be revealed then. This could potentially have a significant effect on the ongoing dedollarisation around the globe.

This summit of the BRICS countries still arouses a very lively interest in that South Africa is the host country and Putin should be present as president of Russia. Now passions are running high as South Africa is a member of the International Criminal Court and is obliged to comply with an arrest warrant issued by this court against Putin. In South Africa, they are still looking for options on how to get out of this delicate situation.

Nevertheless, in relation to the new currency of the BRICS countries, even among the members of this union there is no single vision of what kind of currency it could be. Therefore, in this matter, I do not expect any sensations. In any case, it will be another type of fiat and the appearance of the cryptocurrency will not be affected.

South Africa has a funny situation. They are now in a panic looking for a way out, because they want to "eat the fish and ...." without sitting on the twine .
They've already tried to persuade them to send someone from his gang instead of an international criminal. It's a bust. They made up all sorts of stories - it didn't work. Yesterday someone mumbled "we can't arrest him - Russia will attack us" ) Now it sounds ridiculous... But - if we host him and don't arrest him - South Africa will be kicked out of many international institutions, and South Africa is very undesirable now. In short - a perfect example of how not to make friends with international criminals and pariahs....

And about the "New BRICS currency" - I'm betting on the yuan Tales about some other monetary surrogates do not look serious.

[pooya87]

As you correctly pointed out, this is a gradual move where every country goes through the dedollarisation process

The 15th BRICS summit is going to be very interesting which will be held on 22 – 24 August (about a month from now) and some are saying the BRICS new currency will be revealed then. This could potentially have a significant effect on the ongoing dedollarisation around the globe.

I agree that a more decentralization of global currencies, it will be better and less shocks from any big change in the USA. and US dollar. However, new currency from multilateral union will have many challenge to increase and maintain their power as well as competitiveness in global economy.

In 2022, The Euro currency lost its parity with the US. dollar is example. BRICS currency will have same or even bigger challenge because it is a newborn currency and we have to think BRICS are stronger then the Euro zone or weaker.

Exactly. The bigger problem that sometimes is overlooked is that these currencies (BRICS or EURO) are considered as replacement for dollar which means United States regime will do everything in its power to prevent it from happening. In fact US is the only regime in the world that if you dump their currency they consider it as an act of war. They've bombed countries for less...

As for the fate of BRICS currency, I think the chances of success is higher than euro. One main reason is that members of BRICS are more independent than Europeans and unlike the time euro was created, today US is weak.

[be.open]

The 15th BRICS summit is going to be very interesting which will be held on 22 – 24 August (about a month from now) and some are saying the BRICS new currency will be revealed then. This could potentially have a significant effect on the ongoing dedollarisation around the globe.

This summit of the BRICS countries still arouses a very lively interest in that South Africa is the host country and Putin should be present as president of Russia. Now passions are running high as South Africa is a member of the International Criminal Court and is obliged to comply with an arrest warrant issued by this court against Putin. In South Africa, they are still looking for options on how to get out of this delicate situation.

Nevertheless, in relation to the new currency of the BRICS countries, even among the members of this union there is no single vision of what kind of currency it could be. Therefore, in this matter, I do not expect any sensations. In any case, it will be another type of fiat and the appearance of the cryptocurrency will not be affected.

South Africa has a funny situation. They are now in a panic looking for a way out, because they want to "eat the fish and ...." without sitting on the twine .
They've already tried to persuade them to send someone from his gang instead of an international criminal. It's a bust. They made up all sorts of stories - it didn't work. Yesterday someone mumbled "we can't arrest him - Russia will attack us" ) Now it sounds ridiculous... But - if we host him and don't arrest him - South Africa will be kicked out of many international institutions, and South Africa is very undesirable now. In short - a perfect example of how not to make friends with international criminals and pariahs....

And about the "New BRICS currency" - I'm betting on the yuan Tales about some other monetary surrogates do not look serious.

Don't worry so much, there is no panic.

By mutual agreement, President Vladimir Putin of the Russian Federation will not attend the Summit but the Russian Federation will be represented by Foreign Minister, Mr Sergey Lavrov.

[Abiky]

Keep in mind that they haven't "eliminated" dollar from their international trades, they have decreased its usage. For example China as the biggest bagholder of US debt has dumped $175 billion of it last year but they are still bagholding more of it.

As you correctly pointed out, this is a gradual move where every country goes through the dedollarisation process.

The 15th BRICS summit is going to be very interesting which will be held on 22 – 24 August (about a month from now) and some are saying the BRICS new currency will be revealed then. This could potentially have a significant effect on the ongoing dedollarisation around the globe.

I think it will take decades before BRICS countries defeat the US Dollar for good. The "greenback" is still too powerful to go away that easily. But I'd say this is the beginning of the end for US hegemony. I've thought BRICS would use BTC as their main currency especially to avoid sanctions and whatnot. But now I see that won't be the case with their plans to make a currency of their own backed by Gold. Whenever this will become a success or a failure, it's yet to be seen.

I don't think this will have a negative impact over BTC, especially when the Bitcoin blockchain is decentralized. It's likely BTC will survive alongside a basket of Fiat currencies for generations. Who knows how BRICS' actions will shape the future? Just my thoughts

[Ayers]

....
Breaking USD dominance is not easy as it has maintained that position for the past 100 years, but not impossible. Nothing lasts forever, the fact that many countries have eliminated the dollar in international trade in recent years is showing that the dollar is gradually losing its position.

Tell me please - what is the value and essence of the goal of "breaking the dollar" ? What and why are you trying to achieve ? Any action always has a goal, and there is an understanding of the goal - the benefits or advantages of achieving it.
Or simplified:
What is wrong (specific examples, and arguments) when the dollar is strong and is the currency of the world economy.
What becomes good when someone, as you put it, "breaks the dominance of the dollar" ?
Oh, and one more thing - I'm pretty sure that "dollar domination" has a very good reason. Could you please explain more - what in your understanding would be the criteria for "domination" of another currency?  And let's try to determine - who can take over this domination ? Believe me - we are waiting for a lot of interesting discoveries about the world economy !

So please tell me why the US always defies all tricks to maintain the position of USD? What is their goal in maintaining USD dominance? What's wrong with other coins trying to surpass USD and replace it? And if you think it's strong enough, why should you worry when so many other currencies are trying to break that dominance? Like bitcoin dominance, why there are thousands of altcoins trying to topple it, but most investors never worry about it?

There are many interesting things waiting for us, why don't we wait for time to answer them all? Why are we always trying to prove ourselves right?

Why don't you answer my question first and then I'll answer yours ?  Because it's not nice to have a dialog like this, going away from answering a question and asking your own Let's stick to the logic of dialog. And so - I am waiting for your answer. Preferably reasoned.

Regarding "let's wait" and "Why do we always try to prove ourselves right" - there is such a concept as dialog, exchange of opinions. This is exactly it Based on experience and knowledge, some events are possible to model and predict some things I can in advance and refute erroneous opinions...

By the way, you already have an erroneous opinion - "the fact that many countries have excluded the dollar from international trade". This is your erroneous opinion based on incorrect data or distorted information. Would you like me to prove it? Easy - give me a list of countries you mentioned in this "fact" ?

Because as long as you can answer my question, you will get the question you are asking me.

Well, as pooya87 said, I'm not correct in saying that they have eliminated USD in international trade, but they are reducing their reliance on it and things are still going. You are just trying to argue and always think you are right, you have no proof that what you say will definitely happen. Therefore, I do not want to argue at length because everyone has their own arguments and stubbornness, even if we are wrong, we will never admit it. So I like to let time answer all, I don't rush to conclude who is right and who is wrong, I have enough time to wait with you.

[pooya87]

I've thought BRICS would use BTC as their main currency especially to avoid sanctions and whatnot. But now I see that won't be the case with their plans to make a currency of their own backed by Gold.

As much as I like bitcoin but it is not yet ready for mass adoption, the price of it is too unreliable for such a large long term commitment like what BRICS countries are making. Imagine if you buy a million barrels of oil (what oil tankers usually carry) worth $80 million in bitcoin and the price drops by 10% which is a normal thing in bitcoin. That is $8 million loss. That's not favorable.
However a centralized currency created and controlled by them is a lot more reliable because they dictate its value (exchange rate) so it can be kept fixed.

At this point bitcoin is good for small size trades and as a small portion of the reserved assets of the country.

[dothebeats]

I've thought BRICS would use BTC as their main currency especially to avoid sanctions and whatnot. But now I see that won't be the case with their plans to make a currency of their own backed by Gold.

As much as I like bitcoin but it is not yet ready for mass adoption, the price of it is too unreliable for such a large long term commitment like what BRICS countries are making. Imagine if you buy a million barrels of oil (what oil tankers usually carry) worth $80 million in bitcoin and the price drops by 10% which is a normal thing in bitcoin. That is $8 million loss. That's not favorable.
However a centralized currency created and controlled by them is a lot more reliable because they dictate its value (exchange rate) so it can be kept fixed.

At this point bitcoin is good for small size trades and as a small portion of the reserved assets of the country.

Yes, the risk will be too much. Bitcoin goes up and down, and it would be too much of a loss if countries starts adapting it as a formal currency. Hence, it is truly more favorable and proper to have a new currency compared to adapting bitcoin currency. Additionally, after all, the new development of currency is more of a way for BRICS to ultimately remove themselves from US colonialism.

[DrBeer]

Keep in mind that they haven't "eliminated" dollar from their international trades, they have decreased its usage. For example China as the biggest bagholder of US debt has dumped $175 billion of it last year but they are still bagholding more of it.

As you correctly pointed out, this is a gradual move where every country goes through the dedollarisation process.

The 15th BRICS summit is going to be very interesting which will be held on 22 – 24 August (about a month from now) and some are saying the BRICS new currency will be revealed then. This could potentially have a significant effect on the ongoing dedollarisation around the globe.

I think it will take decades before BRICS countries defeat the US Dollar for good. The "greenback" is still too powerful to go away that easily. But I'd say this is the beginning of the end for US hegemony. I've thought BRICS would use BTC as their main currency especially to avoid sanctions and whatnot. But now I see that won't be the case with their plans to make a currency of their own backed by Gold. Whenever this will become a success or a failure, it's yet to be seen.

I don't think this will have a negative impact over BTC, especially when the Bitcoin blockchain is decentralized. It's likely BTC will survive alongside a basket of Fiat currencies for generations. Who knows how BRICS' actions will shape the future? Just my thoughts

I think the scenario described is from the realm of fiction. And not even science fiction.
Reasons? Simple - none of the BRICS countries, or even all of them together, will be able to compete with the US and its economy.
And especially if you look into the eyes of truth and realize that all the BRICS attempts to get away from the dollar, at best, will turn out to be an approach to the yuan, and the import of Chinese economic problems, or rather pumping them to countries that have left the normal international settlements, going to the "monopoly" yuan from China.
Of course, we can assume a certain situation with the total collapse of the U.S. economy.... But rather the economies of BRICS members will show themselves from the bad side, and by the way they already show themselves - today Russia, China, Brazil,... have large-scale problems. And no one is going to save them or subsidize them

And Bitcoin, with its volatility, uneven distribution of mining (you can say monopolization by some market participants) - will not be able to become a stable and secured currency.

[lizarder]

You should not underestimate India, although they are not comparable to Russia and China economically and technologically. But they have the second largest population in the world and will soon surpass China, so they also play an important role in product consumption as well as an abundant labor force. It can be said that the future of BRICS is quite bright if they do not disagree internally on any issues.

It is not meant to belittle, but economic power can affect the geopolitical conditions of each country and look further at how the conditions of countries that do not have economic power are treated. The population size does not affect whether or not developing countries and in fact a large population will hinder economic processes from running perpendicularly, unskilled work or labor will only be needed differently in other countries and in their own country it is not certain that they will get a decent job.

India cannot be equated with China which has developed so much and China's economic power is so strong because they control several products to the Asian market, China is also strong in terms of technology and many scientists who were born there have succeeded in creating miracles that have never been discovered by other countries.

Breaking USD dominance is not easy as it has maintained that position for the past 100 years, but not impossible. Nothing lasts forever, the fact that many countries have eliminated the dollar in international trade in recent years is showing that the dollar is gradually losing its position.

Not talking about the possibility or not, but the opportunity to reach the dollar domination stage will be difficult to break in the near future. Even though many countries have eliminated the dollar in international trade, the power of the dollar is still very strong and this is proof that breaking the domination of the dollar is not something easy. Optimism is indeed important for some countries that have joined the BRISC, but they need to strengthen their economy first to compete under any conditions.

[dothebeats]

Couple of hours ago there is in news on Twitter saying BRICS countries (Brazil, Russia, India, China, South Africa) are developing a new currency. It was mentioned by State Duma Deputy Chairmen btw.

As I can see all these things to manipulate BTC right? What are your thoughts about this?

BRICS wants to develop their own currency because they really think that it is time for them to be free from the dominance of the US dollar, in my opinion it has nothing to do with BTC or to manipulate the crypto market, because their main goal is to destroy the dominance of the USD. You can read about it in this article https://cointelegraph.com/news/russia-talks-up-prospects-of-brics-countries-developing-new-currency

I agree. This is more on the political side now. And it's heavily being discussed for a long period now. I think OP thought that a new currency will affect BTC somehow but it's just way out of the system as it is more of a political matter.

[DrBeer]

....

Because as long as you can answer my question, you will get the question you are asking me.

Well, as pooya87 said, I'm not correct in saying that they have eliminated USD in international trade, but they are reducing their reliance on it and things are still going. You are just trying to argue and always think you are right, you have no proof that what you say will definitely happen. Therefore, I do not want to argue at length because everyone has their own arguments and stubbornness, even if we are wrong, we will never admit it. So I like to let time answer all, I don't rush to conclude who is right and who is wrong, I have enough time to wait with you.

That's the problem - you're wrong
They have NOT eliminated dollars from international trade. They still trade with the rest of the world in dollars. Because, for example, China cannot buy Western technology for yuan. And Russia can't buy anything of quality for their rubles )
And if you do not read the ramblings of "experts" like the one you quoted. like the one you quoted, and really study the subject area, you will realize that there was a partial replacement and not by the common currency of BRICS, but by yuan, and not to replace the dollar, but to "pump" the problems of the Chinese economy on these unfortunates )
PS. I also recommend to study, for example, the formation of China's reserves, where the growth of investments in U.S. securities, as well as hysterical attempts of Russia to get at least some currency instead of yuan and rupees.
I applaud India - to "divorce" Russia in such a way is a financial show of world scale

[WatChe]

the fact that many countries have eliminated the dollar in international trade in recent years is showing that the dollar is gradually losing its position.

Keep in mind that they haven't "eliminated" dollar from their international trades, they have decreased its usage. For example China as the biggest bagholder of US debt has dumped $175 billion of it last year but they are still bagholding more of it.

As you correctly pointed out, this is a gradual move where every country goes through the dedollarisation process.

The 15th BRICS summit is going to be very interesting which will be held on 22 – 24 August (about a month from now) and some are saying the BRICS new currency will be revealed then. This could potentially have a significant effect on the ongoing dedollarisation around the globe.

China USD reserves are around 3 Trillon USD, so China itself will suffer huge blow if dollar collapse unless they get rid of there all USD holdings. Meanwhile there are news that 40 more countries are in line to join BRICS and this is enough to prove that the platform is getting popular globally. The most interesting part is that gulf countries are also taking interest in joining BRICS and if that happens then what will be fate of billion of USD that belongs to gulf countries but residing in US banks?

[be.open]

the fact that many countries have eliminated the dollar in international trade in recent years is showing that the dollar is gradually losing its position.

Keep in mind that they haven't "eliminated" dollar from their international trades, they have decreased its usage. For example China as the biggest bagholder of US debt has dumped $175 billion of it last year but they are still bagholding more of it.

As you correctly pointed out, this is a gradual move where every country goes through the dedollarisation process.

The 15th BRICS summit is going to be very interesting which will be held on 22 – 24 August (about a month from now) and some are saying the BRICS new currency will be revealed then. This could potentially have a significant effect on the ongoing dedollarisation around the globe.

China USD reserves are around 3 Trillon USD, so China itself will suffer huge blow if dollar collapse unless they get rid of there all USD holdings. Meanwhile there are news that 40 more countries are in line to join BRICS and this is enough to prove that the platform is getting popular globally. The most interesting part is that gulf countries are also taking interest in joining BRICS and if that happens then what will be fate of billion of USD that belongs to gulf countries but residing in US banks?

Yep, to be precise, 22 countries have already submitted official applications for membership in the BRICS and about the same number of informal applications. If all these requests are granted, BRICS will become not only the largest economic alliance in the world, but will also take a dominant position. I have already said earlier that the most interesting moment in the upcoming BRICS summit will not be the creation of a common BRICS currency (this is a very difficult project to implement and a matter for a more distant future), but in what architecture the BRICS will expand, because the issue of expansion itself has actually already been decided. Simply put, will the expansion continue in a peer-to-peer manner, as was already the case with South Africa's entry into the alliance, or will it be a second-level architectural solution. We'll see soon.

[dothebeats]

I was reading about this in many news websites, I was actually thinking that its exeggerated/fake news but it even hits bitcointalk, I guess its true now? I think this can deeply effect future of financial markets because BRICS countries are very very populated and their economies are very big. Their specific currency could become world's third important currency in future maybe passing Pound. But I don't think it will cause massive dedollarization soon. Financial relations are all executed through American Dollars for decades.

It will absolutely take a long time for that to happen. The system will have to adjust for it as it will be a long process and change. However, it will mostly not affect the bitcoin system as widely as others may say, after all this change is mostly a political talk and will focus on that for awhile.