Bitcoin As A Tool: BRICS 2024 Summit Proposes Russian Miners Sell BTC To Evade Sanctions

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As a seasoned researcher who has spent the better part of my career delving into the intricacies of global economics and geopolitics, I find the recent developments surrounding cryptocurrency within the BRICS alliance particularly fascinating.

At the onset of the 2024 BRICS Summit held in Kazan, Russia, the topic of cryptocurrencies has emerged as a key focus. Representatives from Brazil, Russia, India, China, and South Africa are deliberating on the possibility of Russian miners using Bitcoin within international trade transactions. This exploration is driven by an ambition to bypass the restrictive sanctions enforced by the United States.

Lawmakers Propose Bitcoin Sales By Russian Miners

Initially coined as “BRIC” in 2006, comprising Brazil, Russia, India, and China, this grouping subsequently incorporated South Africa in 2010, transforming into BRICS. The objective of this alliance is to unite prominent developing nations against the financial influence of wealthier countries, notably those situated in North America and Western Europe.

The ongoing debates about cryptocurrency are essentially a tactical approach aimed at tackling economic difficulties and fostering financial autonomy beyond dominant Western economies.

The report by Bloomberg indicates that influential figures in Russia’s government are urging miners to sell their Bitcoins to foreign investors. These transactions might allow buyers to utilize Bitcoin and other digital currencies as a means of payment for imports, thus circumventing the strict Western sanctions that have significantly harmed the Russian economy by providing an alternative way to make such purchases.

According to the findings, these countries plan to establish a new financial route using cryptocurrencies like Bitcoin and other digital assets. This route is intended to bypass the usual financial system that heavily depends on the U.S. dollar and traditional banking methods.

Richard Wolff, an American economist and retired professor from the University of Massachusetts Amherst, observed that the BRICS grouping appears to be growing stronger, as the United States’ global impact seems to be diminishing.

Wolff underscored the shortcomings of U.S. military engagements in Vietnam, Afghanistan, and Iraq, implying a diminishing power status mirrored in global politics. Moreover, the economist underscored that nations within the BRICS bloc are not just increasing their political clout, but also making significant strides in economic development.

Putin Advocates For Cryptocurrency Adoption 

Previously, Bitcoinist had shared that Russian President Vladimir Putin has expressed his views on the importance of BRICS countries adopting cryptocurrencies and digital currencies when making financial transactions.

According to the Russian President, this change could provide substantial advantages for the economic alliance as well as emerging countries. Yet, Putin underscored the necessity of creating thorough guidelines to establish a strong regulatory system prior to wholeheartedly adopting cryptocurrency.

Beyond talks about cryptocurrencies, BRICS nations have revealed a fresh payment system called BRICS Pay, intended to contest the authority of the SWIFT financial system.

This blockchain platform is designed to streamline international transactions between BRICS countries, offering a different method for handling financial activities that bypass certain U.S. restrictions.

This project signifies a substantial advancement in transforming financial exchanges within the BRICS group, underscoring their dedication to promoting economic collaboration and lessening reliance on Western financial systems.

As I pen this down, I’m observing that each Bitcoin coin is being exchanged for approximately $65,845, marking a 2% dip over the last day, and a similar decrease of 2% in the past week.

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2024-10-24 15:12