BRICS Nation Outlaws US Dollar? Bitcoin Emerges as Solution

On Jul 7, 2024

Amidst interest in BRICS from Southeast Asian countries, Zambia has become the latest country to ditch the US Dollar, threatening jail time for using foreign currency.
BRICS has revealed its plans to launch a rival currency this year that could be backed by gold, but experts have lauded Bitcoin as a possible replacement.

BRICS is enjoying great interest worldwide, with developing countries seeking to cut ties with the US dollar and seek an alliance. One African contender has announced that it is ditching the dollar and other foreign currencies. In its efforts to abandon the US, Zambia has threatened that citizens found using the dollar could be jailed for up to ten years.

A draft document from the Bank of Zambia reveals that citizens found using foreign currency for local transactions could be jailed. The bank aims to bolster the country’s local currency amidst national economic distress.

JUST IN: 🇿🇲 🇺🇸 Zambia introduces plan to jail individuals caught using the US Dollar and other foreign currency for up to 10 years. pic.twitter.com/2MDbjAFYhj
— BRICS News (@BRICSinfo) July 3, 2024

Like most BRICS countries, Zambia has been questioning the use of the dollar as a trading currency. Former Zambian president Thabo Mbeki, who has been at the forefront of the movement, has indicated that in two countries that did not use the dollar as their currency, conducting transactions did not require the dollar but could easily be completed with their national reserver.

This is a growing trend, with countries like China, Russia, the UAE, and others opting to complete international transactions in their national currency. This has led to the dollar’s dominance dropping to a record low, a trend that has seen even the IMF raise the alarm over the currency’s future as a trade currency and national reserve.

BRICS Alliance Builds New Payment System

As countries move away from the US, BRICS has emerged as the best bet. This alliance is made up of some of the largest economies and the fastest-growing economies. The coalition aims to challenge the political and economic power of the wealthier nations of America and Europe. Initially made up of five countries, Brazil, Russia, India, China, and South Africa, it has since added Egypt, Ethiopia, Iran, and the United Arab Emirates. Additionally, it has received numerous interest with reviews for new additions that are still ongoing.

Southeast Asian countries such as Malaysia and Thailand have already submitted membership requests. The alliance has yet to have any members from Southeast Asia, and adding one or both would be strategic.

“Being a member of BRICS would open up trade and investment opportunities, so the question is ‘why not?’” Piti Srisangam, the executive director of the ASEAN Foundation, told DW.

These developments come ahead of Russia’s second BRICS conference. After a successful one in South Africa in 2023, Russia is preparing to host the most important meeting where the alliance could launch its new payment system and currency.

With member countries hodling gold, experts speculate that the new currency could be backed by gold. But so far, it’s clear that Bitcoin is superior to gold. As such, the crypto community has called on the alliance to adopt Bitcoin, eliminating the need to build a payment system and getting the benefits of gold.