According to reports by Deutsche Bank, there has been a clear change in the conduct of international finance. This is because BRICS nations are now relying on cryptocurrencies like Bitcoin to conduct cross-border businesses due to geopolitical tensions.
This increase constitutes a rather large segment of global crypto settlement, as the countries contribute to 28% of such transactions. The move toward digital currencies comes as these nations seek alternatives to traditional financial systems, which are heavily influenced by Western sanctions and policies. Cryptocurrencies are emerging as vital tools for BRICS countries to bypass limitations imposed by international disputes and sanctions, particularly those influenced by ongoing conflicts such as the one in Ukraine.
Using digital assets allows for more seamless trade between countries like China and Russia, where conventional banking channels face restrictions due to sanctions. This adaptation underscores the strategic shift towards decentralizing financial power away from dominant currencies like the U.S. dollar.
The BRICS nations' shift towards cryptocurrency is a bypass for sanctions and a reduction in the excessive use of the U.S. dollar in the foreign trade system.
According to Deutsche Bank, the use of digital assets in cross-border payments is expanding significantly, with an annual growth rate of 147%. As more countries adopt digital currencies in their national payment systems, this growth threatens the dollar as the global reserve currency.
Russia, in particular, has shown a marked increase in cryptocurrency adoption, with user numbers swelling from 3 million in 2020 to over 24 million in 2024. This surge indicates a larger pattern across BRICS nations, where digital assets are considered integral to future financial infrastructures. Such developments suggest a significant shift in how global financial transactions could be conducted, potentially leading to more diversified and resilient economic systems.
The potential for a BRICS-wide payment system incorporating digital currencies could redefine international trade mechanics, making transactions more direct and less susceptible to external influences. This prospect aligns with the financial strategies of these nations to enhance their economic sovereignty and stability.