Currently, the global market is dominated by the US dollar. This dominance allows the United States to control the market to some extent. China and Russia present themselves as alternatives that are capable of challenging the advantage that the US currently enjoys in the market. Together and individually, they have come up with various strategies to counter the US dominance. A document signed by these two Eurasian powers during the 29th regular meeting of Chinese and Russian Prime Ministers was the latest such attempt to effectively challenge the US dominance. Unlike previous such events, this time there are some interesting takeaways for the cryptocurrency community. Want to know what they are? Read on!
Strategy for China-Russia Financial Cooperation
During the meeting, both countries took a number of bold decisions. The most notable was the decision to strengthen their financial corporation. As part of this decision, they would limit the use of the US dollar and instead improve 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 wise plan.
China-Russia’s plan for BRICS
Both countries acknowledged the importance of improving their relationship with BRICS. China made it clear in which areas it wanted to cooperate with BRICS. Artificial intelligence was mentioned as one of the main focus areas where China wanted to cooperate with BRICS countries. China proposed to establish a China-BRICS Artificial Intelligence Development and Cooperation Center. The plan was well received by the Russians during the meeting. It seems that Russia and China want BRICS to play a greater role in managing the global economy. There is no doubt that they want to create a power bloc that can be presented to the world market as a symbol of fair trade practices and a strong pillar of non-political trade.
Implications of Russian-Chinese-BRICS Cooperation on the Crypto Market
Some of the bold decisions Russia and China made during the meeting fit well with what the crypto industry stands for, namely financial independence. There is a chance that the proposed reduction in reliance on the US dollar could encourage the adoption of alternative financial systems, such as cryptocurrencies like Bitcoin, that are not controlled by any country. The growing importance of BRICS in global economic governance could provide opportunities for cryptos as alternative assets and payment methods within the bloc.
In conclusion, there are those who think that if financial independence is a country’s goal, it should work on embracing cryptocurrencies. If the latest plan by Russia and China is not motivated by politics, they cannot stop themselves from taking a strong stance in favor of cryptocurrencies. At this point, it is too early to assume whether the proposed cooperation between Russia, China, and BRICS can benefit the global adoption of cryptocurrencies or not.
