Right now, the global market is dominated by the US dollar. This dominance allows the United States to control the market to an extent. China and Russia present themselves as alternatives capable of challenging the advantage the US currently enjoys in the market. They, together and individually, have crafted several strategies to counter the dominance of the US. A document signed by these two Eurasian powers in the 29th Regular Meeting of Chinese and Russian Prime Ministers was the latest of those efforts to effectively challenge the dominance of the US. Unlike previous such events, this time, there are some interesting takeaways for the cryptocurrency community. Interested in learning what they are? Continue reading!
China-Russia Financial Collaboration Strategy
In the meeting, both countries made some bold decisions. The prominent one was the decision to enhance their financial corporation. As part of this decision, they would limit the use of the US dollar and instead would enhance the use of their own currencies, in bilateral trade, investment and credit. Opening bank branches in each other’s countries was accepted by both countries as a sensible plan.
China-Russia’s Plan for BRICS
Both countries recognised the importance of enhancing their relationship with BRICS. China disclosed clearly in what areas it wanted to collaborate with BRICS. Artificial intelligence was named one of the prime focus areas in which China wanted to work with BRICS countries. China proposed the establishment of a China-BRICS Artificial Intelligence Development and Cooperation Center. The plan was received well by the Russians in the meeting. It seems that Russia and China want BRICS to play a bigger role in managing the global economy. There is no doubt that they aim to create a power block, which can be presented to the global market as a symbol of fair trade practices and a strong pillar of non-political trading.
Implications of the Russian-China-BRICS Collaboration on the Crypto Market
Some of the bold decisions taken by Russia and China in the meeting go well with what the crypto industry stands for, which is financial independence. There is a chance that the proposed reduction of reliance on the US dollar might encourage the adoption of alternative financial systems, such as cryptocurrencies like Bitcoin, which are not controlled by any country. The growing importance of BRICS in global economic governance might open up opportunities for cryptos as alternative assets and payment methods within the block.
In conclusion, there are people who think that if financial independence is the aim of a country, it should work towards embracing cryptocurrencies. If the latest plan of Russia and China is not motivated by politics, they cannot stop themself from taking a strong stand in favour of cryptocurrencies. Rightnow, it is too early to assume whether the proposed Russia-China-BRICS collaboration can benefit the global crypto adoption or not.
