The movement to boycott the US dollar by the BRICS alliance is gaining significant momentum, as India and Nigeria have recently expanded this mission through a non-dollar funded trade deal. Both countries, which are major parties in the BRICS alliance, have agreed to conduct bilateral trade using their local currencies instead of the US dollar. This decision has sparked curiosity among crypto investors about the potential impact on Bitcoin (BTC), the largest digital asset.
Reports indicate that India and Nigeria have officially signed a trade agreement that encourages transactions to be made in local currencies rather than the US dollar. The Indian Commerce and Industry Ministry has stated that India aims to strengthen economic ties with Nigeria through this initiative.
The BRICS alliance, consisting of Brazil, Russia, India, China, and South Africa, along with Iran, Egypt, Ethiopia, and the United Arab Emirates, has been urging other developing countries to engage in international trade using local currencies. China, Russia, and India are the top three countries aiming to replace the US dollar with their own currencies. Now, Nigeria and India have joined the de-dollarization movement. While India has been a member of the alliance for a long time, Nigeria recently applied for membership, aligning with the BRICS’ objective of enhancing economic ties through local currencies. The trade agreement between the two countries covers sectors such as transportation, energy, and pharmaceuticals, as highlighted in a Crypto News Flash YouTube video.
It is important to note that Nigeria is India’s second-largest trading partner in Africa. Between 2022 and 2023, the bilateral trade between the two nations amounted to $11.8 billion. However, it declined to $7.89 billion between 2023 and 2024. Currently, there are approximately 135 Indian enterprises operating in Nigeria, with a total investment of $27 billion. These investments are spread across various sectors, including manufacturing, consumer products, infrastructure, and services.
Since 2022, the BRICS alliance has been actively seeking additional nations to support their de-dollarization goal, as previously reported by Crypto News Flash. Their efforts are paying off, and if more agreements are made without utilizing the US dollar, it could pose a risk to the US economy. This move is expected to challenge the dominance of the US dollar in the coming years.
As mentioned in earlier reports by Crypto News Flash, the BRICS alliance is embracing blockchain technology for its newly developed payment system. Their focus is on creating a competing currency based on digital assets.
The possibility of Bitcoin benefiting from countries moving away from the US dollar for bilateral trade adds another dimension to this conversation. Bitcoin could potentially benefit from this trend, as it may be perceived as a more neutral and decentralized alternative. Furthermore, a decrease in reliance on local currencies could lead to an increased use of Bitcoin, particularly in regions where local currencies are susceptible to political manipulation.
The potential consideration of Bitcoin by BRICS has continued to shape its price outlook. According to the latest market data, Bitcoin is currently trading at $62,914, representing a 3.2% increase in the past 24 hours. The trading volume stands at $22 billion, and the market cap is $1.2 trillion.