The BRICS nations discussed the possibility of using Bitcoin and other cryptocurrencies for payments on imports during the BRICS Summit this week. The use of crypto among the BRICS countries would aim to counter the use of international sanctions.
BRICS investigate US dollar alternatives
It was widely expected that an alternative to the US dollar world reserve currency would be on the agenda at the BRICS Summit which ended on Thursday. However, even though a symbolic banknote was featured, it appears that there was more emphasis on discussing trade in local currencies.
It seems that the BRICS leaders continue to recognise the US dollar as the primary currency for world trade, but they are also cognizant of the need for alternative currencies when political sanctions forbid the use of the dollar by member nations.
Russia proposes Bitcoin and crypto trade payments
As well as the use of local currencies, the BRICS leaders considered the potential for using cryptocurrencies. This idea was particularly favoured by the Russian delegation, who posited the idea of local miners who would sell their Bitcoin to buyers, enabling them to pay for imported goods, thereby bypassing sanctions imposed upon them.
To this end, the Russian government has established two exchanges in the country that allow fiat to be exchanged for crypto and vice versa. In addition, the Russian government is encouraging the growth of Bitcoin mining within its borders, which would guarantee a steady supply.
The BRICS nations are home to a huge chunk of the world’s population, and produce a considerable amount of global GDP. With 30 other countries currently applying for BRICS membership, this is potentially going to weaken the dollar’s prime position as the world reserve currency, perhaps bringing Bitcoin to the fore in the process.
$BTC trend is still up
Source: TradingView
The short-term chart for $BTC shows that the price is still holding above the bull flag trendline. It will be important for the bulls going forward that this remains the case. As well as the support from the descending trendline, there is also horizontal support at $66,000.
Should the $BTC price fall through both of these, the last line in the sand to avoid a trend reversal back to the downside would be just under $59,000.
That said, it is far more likely that this trend continues, given the buoyancy across traditional markets and the potential for more rate cuts and liquidity injections from central banks across the world.
$69,000 could provide base structure for next stage of bull market
Source: TradingView
Zooming out into the much higher two week time frame, the $69,000 horizontal resistance is plain to see. The $BTC price has been rejected from here once again, but with the top of its bull flag acting as support below, this can become the platform for another breakout attempt, perhaps as early as next week.
If successful, and the $69,000 level is flipped into support, this would likely provide the base structure for the next stage of the bull market.
At the bottom of the chart, and of huge importance for this next potential leg up, is the Stochastic RSI. Both indicator lines have moved up past the 25.00 level, signalling that huge upward price momentum is coming into Bitcoin. Seat belts on, and brace for lift-off.
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