Could Bitcoin Be BRICS' New Weapon to Dethrone the US Dollar?

As BRICS nations (Brazil, Russia, India, China, and South Africa) work to create a new currency to reduce dependence on the U.S. dollar, debates are heating up over what assets should back it.

While gold and national currencies are leading contenders, some argue that including Bitcoin (BTC) could be a game-changer.

Here's why.

This article is part of the Chain Reactions series: expert opinions on everything blockchain and crypto.

What Does BRICS Want From a New Currency?

The BRICS bloc is striving to create a currency that is stable, widely trusted, and independent.

In other words, it needs to tick all three boxes:

1. Being able to resist inflation and maintain value over time.
2. Having the potential to earn global credibility, in order to compete with the US dollar.
3. Existing outside of the direct influence of Western financial systems.

So far, gold and national currencies have been proposed for backing the currency, with gold providing a stable foundation and national currencies reflecting BRICS members’ economic strengths.

But Bitcoin, with its decentralised, borderless, and inflation-resistant qualities, offers unique advantages.

How Bitcoin Could Help BRICS

The way I see it, there are three reasons why BRICS nations might seriously consider implenting Bitcoin as part of their strategy.

First, Bitcoin is neutral and decentralized. It's not controlled by any country, ensures no BRICS member dominates the currency system and fostering trust and cooperation among the bloc.

Second, Bitcoin already has global liquidity. Today, it's widely traded and accepted, making it easy to use in international transactions. Its global appeal could enhance the credibility and attractiveness of the BRICS currency.

Third, Bitcoin serves as a digital form of gold. The asset has a limited supply, making it resistant to inflation. In other words, adding Bitcoin would combine the stability of gold with the benefits of a digital asset, appealing to tech-savvy markets.

In addition, using Bitcoin would signal BRICS’ commitment to modernising finance through blockchain technology, opening doors to faster and more transparent transactions and reinforcing a commitment to innovation.

A Bold Vision for the Future

The recent BRICS summit in Moscow underscored growing interest in using Bitcoin to facilitate cross-border transactions within the bloc.

While China would need to reassess its restrictive stance on cryptocurrencies, its position has not always been entirely negative. If consensus can be reached, Bitcoin’s inclusion in the BRICS currency could revolutionise global finance.

By combining gold’s stability, national currencies’ economic representation, and Bitcoin’s neutrality and innovation, BRICS could create a truly modern and resilient financial system. For Bitcoin, this collaboration would be a monumental step toward becoming a widely trusted and global asset.

Countries holding Bitcoin reserves would stand to benefit significantly from its expanded use, and the growing role of Bitcoin in international finance could pave the way for an even more ambitious future—perhaps one where Bitcoin emerges as the true global currency.

As always, balancing the pursuit of innovation with the need for stability will be crucial to realising this transformative vision.