The BRICS summit in Kazan put cryptocurrencies on the agenda as Russian officials advocated the use of digital assets to bypass Western sanctions.
According to Bloomberg, the proposal suggests that Russian cryptocurrency miners could sell their Bitcoin to domestic and international buyers, who could then use Bitcoin and other digital currencies to facilitate imports.
With Western sanctions weighing on Russia’s traditional financial systems, the push into crypto reflects an effort to develop an alternative economy that bypasses the US dollar-dominated framework. As Russia looks for ways to bypass these sanctions, BRICS countries appear to be solidifying their strategies.
Commenting on the changing global landscape, American economist and Emeritus Professor at the University of Massachusetts Amherst, Richard Wolff, stated that the BRICS coalition is gaining strength at the expense of the US. Describing America’s global influence as declining, Wolff said, “We are in decline… and we are trying to hold on.”
Wolff highlighted historical setbacks the US has faced, such as defeats in Vietnam, Afghanistan and Iraq, arguing that these losses were indicative of a waning American dominance. He also stressed that despite the US’s continued support for Israel, the Middle Eastern country may not be able to maintain control over the region in the long term.
In addition to geopolitical changes, Wolff also noted the growing economic power of the BRICS countries, stating that these countries are increasingly positioning themselves as a counterweight to the US-led financial order.
Although Brazilian President Luiz Inacio Lula da Silva was unable to attend the summit in person due to health issues, he expressed his support for these developments and joined the event via video call.
The summit, held in Kazan with the participation of key leaders from Brazil, Russia, India, China and South Africa, is expected to further discuss economic cooperation and alternative financial strategies that could shape the global order in the coming years.
*This is not investment advice.