The 16th BRICS Summit, hosted by Russia in the vibrant city of Kazan, kicked off on October 22nd, 2024, amidst a buzz of anticipation and speculation. Many speculated that Russia, struggling under heavy economic sanctions due to its military actions in Ukraine, would propose bold strategies to reshape the global economic order and challenge Western influence.
What were these ideas? What changes shall they bring? Let’s find out.
Fueling the speculation, Matthew Sigel, Head of Digital Assets Research at VanEck, shared on X (formerly Twitter) that Russian lawmakers were pushing the idea of using Bitcoin to get around the sanctions. This revelation quickly sparked interest in the crypto community, raising the question: Could this boost the Bitcoin market?
As expected, Russia brought the topic of cryptocurrencies to the BRICS discussion. Sigel mentioned that Russian officials suggested using Bitcoin for international trade payments, signaling their urgency to find ways around Western financial barriers.
The effects of these sanctions aren’t limited to Russia. For instance, Italian small and medium-sized enterprises (SMEs) have voiced concerns about the challenges of exporting goods to Russia, with payment processing being the main obstacle due to the restrictions.
Because cryptocurrencies are decentralized, they are hard to control or restrict, making them an attractive option for countries facing economic sanctions. For Russia, using Bitcoin could help solve some of the issues related to payment processing under the current restrictions. It’s clear why Russian representatives are so eager to promote Bitcoin as a solution for global trade.
The increased focus on cryptocurrencies at the BRICS Summit highlights their potential to disrupt traditional financial systems and reshape global economic relationships.
At the start of the summit, Bitcoin was priced at $67,426.94, with a slight 0.3% rise over the last 24 hours. The day before, the price had dropped sharply from $67,426.94 to $66,672.04. Now, the market is showing signs of recovery, with the current price at $67,416.04, reflecting a 0.1% gain in the past hour. This upward trend indicates that the market is close to recovering from its recent losses.
The idea of using Bitcoin to bypass sanctions marks a significant change in how cryptocurrencies are viewed on the global stage. However, the real challenge is how other BRICS nations will respond to Russia’s proposal.
Will they support this alternative payment option, or will they be cautious about challenging the current financial system? The next few days could reveal whether Bitcoin will gain traction as a tool for international trade.
Stay tuned to Coinpedia for more such interesting macroeconomic stories!
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