The US dollar has been the dominant force across the globe since dropping the gold standard
& moving into a standard based on Oil.
They call it the petrodollar, but many of these OIL producing nations who keep this
alive are starting to rethink their positions.
They want a new currency, they want dollar dominance to end.
Could this new currency be backed by BITCOIN?
There’s a better chance of it happening than you think…so think hard…because it’s
time for Chico Crypto!
The Oil producing nations are going hard against the US…and yesterday the markets didn’t
react well to the news, with an overall fall off a cliff…the only thing going up was
oil.
I wonder why?
Well because OPEC+ agreed to deep oil cuts, despite pressure from the United States.
From the article we can see it says “OPEC+ agreed its deepest cuts to oil production
since the 2020 rona panic.
Saudi Arabia and other members of OPEC+ - which groups the Organization of the Petroleum Exporting
Countries and other producers including Russia - have said they are seeking to prevent volatility
rather than to target a particular oil price.
The West has accused Russia of weaponizing energy, creating a crisis in Europe that could
trigger gas and power rationing this winter.Moscow, meanwhile, accuses the West of weaponizing
the dollar and financial systems such as SWIFT in retaliation for Russia sending troops into
Ukraine in February.”
The West is accusing Russia and other OPEC+ nations of manipulating oil prices while Russia
and other OPEC+ nations like Venezuela and Iran are accusing the West of manipulating
the financial system…obviously they are starting to think about alternatives to US
dollar dominance.
The writing is on the wall..
And that writing is getting clearer with each passing day…back in June of this year, it
was announced that the BRICS nations, whose primary members include Brazil, Russia, India,
China & South Africa…were looking to create their own reserve currency.
From the article we can see it says “"The matter of creating the international reserve
currency based on the basket of currencies of our countries is under review," Putin told
the BRICS Business Forum.
“We are ready to openly work with all fair partners.”
Down in the article we can see it states “"This is a move to address the perceived US-hegemony
of the IMF," ING's global head of markets Chris Turner said in a note.
"It will allow BRICS to build their own sphere of influence and unit of currency within that
sphere."
Now you may be saying…what about the OPEC+ nations??
Nations like Saudi Arabia and other middle eastern oil producing countries that are not
a part of BRICS?…well further down, the article states “One possibility is that
the BRICS basket currency could attract the reserves not just of the group's members,
but also countries already in their range of influence.
These include nations in South Asia and the Middle East.”
Sooo these Oil producing OPEC nations are likely going to be involved in the creation
of this new reserve currency…
And the BRIC nations are moving quickly with its creation…as we can see earlier this
week, more news was released regarding the reserve currency.
This article “BRICS countries hold talks on reserve currency” states “The BRICS
countries are working on establishing a new reserve currency to better serve their economic
interests, Ambassador at Large of Russia’s Foreign Ministry Pavel Knyazev said.
“The possibility and prospects of setting up a common single currency based on a basket
of currencies of the BRICS countries is being discussed.
According to the diplomat, member states are “actively studying mechanisms” to exchange
financial information to develop a reliable alternative for international payments.
So what about Bitcoin???
Will this benefit BTC??
From this article titled “Putin's BRICS new currency could benefit gold and Bitcoin”
we can see the article states “Safety, liquidity and return make a great reserve currency,
which is why BRICS could potentially look toward gold, We doubt the mercantilist nations
involved in BRICS would want to transfer valuable FX reserves into this more local sphere of
influence.
If they are worried about the path of sanctions and the increasing weaponization of the dollar,
they, like Russia, might prefer to move into gold.
Another asset that could benefit from a bigger de-dollarization move is Bitcoin, said Wells
Fargo's real asset strategy head John LaForge.”
Gold and Bitcoin will benefit from this…and they both could be used to back the currencies
of the BRIC nations who would be involved in the reserve basket of currencies!!
Sooo are the BRICS nations and the OPEC nations starting to warm up to Bitcoin and cryptocurrency?
Well everyone knows Russia is…
Back in March of this year, it was announced by Russian lawmakers that the country would
be willing to trade its oil and gas exports for Bitcoin!!
In the article it says “ In a news conference Pavel Zavalny said Western countries can pay
in the ruble and gold if they want to buy Russian energy, But for "friendly" countries
like China and Turkey, the country is open to payment in their own currencies — or
even in the leading cryptocurrency, he said.
Then just last month…the bank of Russia announced it was legalizing cryptocurrencies
for cross border transactions.
The article on this states “Alexei Moiseev, Russia’s Deputy Finance Minister has stated
that the Bank of Russia and the Finance Ministry anticipate legalizing cross-border cryptocurrency
payments soon.”
Russia is on board…but what about the other BRICS nations?
Brazil, India, China & South Africa??
Well in June of this year, Brazil introduced a bill to make crypto payments legal!
This Cointelegraph article states “The proposed addition in Article 835 of the Civil Procedure
Code states that while crypto assets are not a currency in and of themselves, they could
be “used as a financial asset, means of exchange or payment, or instrument of access
to goods and services or investment.”
Then just after this…Brazil’s most famous city, Rio De Janeiro announced that they were
moving forward with their Bitcoin integration plans.
The article says “Rio de Janeiro’s secretary of finance and planning, Andrea Senko, recently
revealed in an interview that her team is looking to spur the adoption of Bitcoin (BTC)
by adding the digital asset to the city’s treasury portfolio.
To help with these efforts, the city government has established the Municipal Committee for
Crypto Investments (CMCI), the role of which, according to Senko, is as follows:
“The Municipal Committee for Cryptoinvestments (CMCI), established in March 2022, works on
a policy for investment in crypto assets and a governance model for decision making.”
Lower down in the article is also says this “The isolated initiative has garnered some
traction on a national level.
Brazil’s central government recently published a detailed document outlining a 0% tax on
the import of Bitcoin mining gear, with the only caveat being that the equipment should
be powered by renewable energy wholly.”
So what about China???
Well as we know last year in May China decided to ban crypto mining….well the miners are
still mining.
It was reported this year, that despite the “BAN” china was resurging as a dominant
mining force.
The bloomberg article on this states “While the US extended its leading position as the
dominant location for Bitcoin mining, China has reemerged as the second-largest locale
despite a government ban on the activity last year.”
Despite the government's repeated bans…possession of cryptocurrency within China is still 100
percent legal which Cointelegraph reported just last month.
What about India??
Well if you didn’t know India is one of the biggest countries in terms of Bitcoin
adoption.
Chainalsis just last month ranked countries by their adoption and from the MAP we can
see India is ranked #4….even outdoing the United States who is ranked #5..
And India is set to finalize its stance on the legality of cryptocurrencies by the first
quarter of next year!!
The Bitcoin.com article on this states “One of the questions that we (India) have to respond
is on the legality of cryptocurrencies, since we have already started to tax them.
We will finalize our responses by February-March 2023.
We have to respond to the FATF (Financial Action Task Force) by May.”
What about the last BRICS nation, South Africa??
Well back in August of this year, Coindesk reported that “South Africa's Central Bank
Greenlighted Financial Institutions to Serve Crypto Clients”
So all of the BRICS countries are involved with Bitcoin and crypto in one way or another,
becoming friendly to legalizing it, regulating it, and getting it involved with their financial
infrastructures.
What about OPEC+ nations??
Well Saudi Arabia’s central bank just added a crypto chief last month to boost their digital
ambitions, Bloomberg reported.
The UAE, United Arab Emirates…is making a play to become the global cryptocurrency
hub.
The Reuters article states “Dubai and Abu Dhabi.
In the last few months, the pair have handed out more than 30 licenses and passed new laws
for crypto exchanges to operate in the cities.
The two largest OPEC nations are going all in with crypto too.
And if you look at the other OPEC nations, they are following suit….these nations currencies
backed by gold and Bitcoin versus the US dollar?
It just might happen and sooner than anyone thinks.
Cheers I’ll see you next time!