BRICS Leaders Eye Bitcoin to Counter Western Sanctions at Kazan Summit
BRICS leaders at the Kazan Summit are pushing for Bitcoin as a financial tool to bypass Western sanctions, signaling a shift away from US dollar dependency. Strategic partnerships and crypto mining initiatives within BRICS reflect the coalition’s goal to reduce reliance on Western financial systems and boost technological self-sufficiency. Matthew Siegel, the head of digital [...]
- BRICS leaders at the Kazan Summit are pushing for Bitcoin as a financial tool to bypass Western sanctions, signaling a shift away from US dollar dependency.
- Strategic partnerships and crypto mining initiatives within BRICS reflect the coalition’s goal to reduce reliance on Western financial systems and boost technological self-sufficiency.
Matthew Siegel, the head of digital assets at VanEck, shared a Bloomberg report highlighting that BRICS lawmakers are advocating for Russian miners to sell their Bitcoin to international buyers. This move aims to facilitate the use of Bitcoin and other crypto assets for imports, offering an alternative in the face of sanctions that have crippled Russia’s economy.
In line with a CNF update on the analysis by an expert who declared that the US dollar is at its limits and urged a shift to Bitcoin (BTC), Matthew Siegel’s statement highlights how crypto provides a pathway outside traditional financial systems dominated by the US dollar. BRICS nations are exploring new opportunities for economic cooperation.
As the BRICS Summit Kicks Off, Top Lawmakes Are Pushing the Idea that Russian Miners Could Sell Their #Bitcoin to International Buyers, Who Would Use BTC and Other Crypto to Pay for Imports, Effectively Bypassing Western Sanctions.
— matthew sigel, recovering CFA (@matthew_sigel) October 23, 2024
BRICS Seeks to Bypass Dollar Dependency
At the annual summit in Kazan, Russia, BRICS leaders reinforced the use of Bitcoin to bypass Western sanctions. Richard Wolff, a US economist and professor emeritus at the University of Massachusetts Amherst, echoed the sentiment of shifting global dynamics, pointing out the growing strength of the BRICS coalition as the United States faces economic decline. Russian President Vladimir Putin addressed this issue directly during the BRICS summit, stating:
The dollar was used as a weapon. It is true… If they don’t let us work with it, what else should we do? We should seek other alternatives.
Putin’s remarks further solidify BRICS’ commitment to moving beyond dollar reliance, potentially turning to crypto as a financial alternative.
In line with these developments, Russia has been developing a settlement and payment infrastructure designed to bypass the Swift payment system. This de-dollarization initiative could be a key proposal from the summit.
Meanwhile, a strategic partnership between Russia’s BitRiver and the Russian Direct Investment Fund (RDIF) is aimed at launching a BRICS-wide mining initiative to establish crypto and AI data centers across the coalition. The collaboration is set to boost computing power while reducing dependency on Western technology and sanctions.
However, at the time of writing, Bitcoin (BTC) is trading with a decrease of 0.18% in the past day and 0.41% in the past week, reaching a price of $67,164.75. With Russia’s recent crypto mining regulations, including new regulations discussed at the Kazan Summit, this partnership signifies BRICS’ expanding influence in the crypto space, emphasizing its push toward self-sufficiency and technological advancement.
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