The momentum behind the BRICS’ mission to boycott the US dollar is growing significantly, as India and Nigeria have recently expanded this initiative through a non-dollar funded trade deal. Both countries, which are key members of the BRICS alliance, have agreed to conduct bilateral trade using their local currencies instead of the US dollar. This development has raised questions among crypto investors about the potential impact on Bitcoin, the largest digital asset.
According to reports, India and Nigeria have officially signed a trade agreement that encourages the use of local currencies for most payments instead of the US dollar. India’s Commerce and Industry Ministry has stated that the aim is to strengthen economic ties with Nigeria. The BRICS alliance, consisting of Brazil, Russia, India, China, and South Africa, as well as Iran, Egypt, Ethiopia, and the United Arab Emirates, has been urging other developing nations to engage in international trade using local currencies. China, Russia, and India are the top three countries leading the charge to replace the US dollar with their own currencies.
Now, Nigeria and India have joined the de-dollarization movement. While India has been a member of the alliance for a while, Nigeria recently applied for membership, aligning with the BRICS’ objective of enhancing economic ties through local currencies. As explained in a Crypto News Flash YouTube video, the trade agreement between the two countries covers sectors such as transportation, energy, and pharmaceuticals.
It’s worth noting that Nigeria is India’s second-largest trading partner in Africa. Bilateral trade between the two nations amounted to $11.8 billion between 2022 and 2023, but declined to $7.89 billion between 2023 and 2024. Currently, there are approximately 135 Indian enterprises operating in Nigeria, with a total investment of $27 billion. These investments are spread across various sectors, including manufacturing, consumer products, infrastructure, and services.
Since 2022, the BRICS alliance has been actively seeking additional nations to support the de-dollarization objective. As previously reported by Crypto News Flash, their efforts have been successful. The primary goal of the BRICS is to replace the US dollar as the global reserve currency with local currencies.
If the BRICS continues to form agreements with more nations that bypass the US dollar, it could pose a risk to the US economy. Over the next few years, this move is expected to challenge the dominance of the US dollar.
As previously mentioned in reports by Crypto News Flash, the BRICS alliance is embracing blockchain technology for its newly developed payment system. They are focused on creating a competing currency based on digital assets.
This shift away from the US dollar for bilateral trade presents an interesting opportunity for Bitcoin. Bitcoin could potentially benefit from this trend, as it may be seen as a more neutral and decentralized alternative. Additionally, a decrease in reliance on local currencies could lead to increased use of Bitcoin, especially in areas where local currencies are prone to political manipulation.
The potential consideration of the BRICS alliance has been shaping Bitcoin’s price outlook. Currently, Bitcoin is trading at $62,914, representing a 3.2% increase in the past 24 hours. The trading volume stands at $22 billion, with a market cap of $1.2 trillion.
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