President Trump said that if the BRICS nations go ahead with their plans to scale back reliance on the US greenback, they are going to lose alternatives to promote any of their choices to the US. In a tweet posted on December 1, Trump mentioned, “The concept that the BRICS Countries try to maneuver away from the Dollar whereas we stand by, and watch is OVER. We require a dedication from these Countries that they are going to neither create a brand new BRICS Currency, nor again some other Currency to switch the mighty U.S. Dollar or, they are going to face one hundred pc tariffs and will anticipate to say goodbye to promoting into the fantastic US Economy.”
The concept that the BRICS Countries try to maneuver away from the Dollar whereas we stand by and watch is OVER. We require a dedication from these Countries that they are going to neither create a brand new BRICS Currency, nor again some other Currency to switch the mighty U.S. Dollar or, they…
— Donald J. Trump (@actualDonaldTrump) November 30, 2024
It is noteworthy that this warning from the US President comes simply days after Russia’s Upper House of Parliament accredited a invoice outlining the taxation framework for crypto belongings – marking a step in the direction of legalising cryptocurrencies within the nation. In order to maintain a well-oiled crypto ecosystem inside its territories, Russia additionally plans to exempt crypto miners from paying value-added tax (VAT) on mined cryptocurrencies. Russian President Vladimir Putin is but to signal this invoice right into a regulation.
That being mentioned, Putin alongside Indian Prime Minister Narendra Modi, and China’s Xi Jinping haven’t reacted to President Trump’s warning as of now.
Details on BRICS’ Plan with Digital Currencies
After COVID, the US Federal Reserve applied consecutive rate of interest hikes to stabilise its struggling economic system, which negatively impacted smaller economies depending on the US greenback.
For nations like China and Russia, the push to scale back reliance on the US greenback grew stronger after the US imposed a number of sanctions on their nationals. In China’s case, issues over nationwide safety associated to tech had been a significant factor, whereas Russia’s ongoing struggle with Ukraine led to sanctions not solely from the US but in addition from different nations.
Since March 2024, the BRICS began to plan a digital fee community, backed by digital currencies. Tentatively referred to as BRICS Pay, the platform is predicted to facilitate cross-border settlements for the above-mentioned nations by way of digital belongings like crypto and CBDCs.
The BRICS nations are additionally planning to launch this inside fee system alongside a safe messaging platform very similar to the SWIFT system – that’s utilized by worldwide banks presently to facilitate inside communications. The launch timeline for this platform stays unsure.
