Key Points
- Argentina, the UAE, and Ethiopia, new members of BRICS, have started mining Bitcoin using government resources.
- The move indicates a growing trend among BRICS nations towards using digital assets for economic resilience and financial independence.
Argentina, the United Arab Emirates (UAE), and Ethiopia, the latest additions to the BRICS coalition, have initiated Bitcoin mining using their governmental resources.
Matthew Sigel, who is the Head of Digital Assets Research at VanEck, an investment firm, revealed this development.
BRICS Nations and Digital Assets
This action signifies a rising trend among BRICS countries to investigate digital assets as a means of achieving economic strength and financial autonomy.
The BRICS coalition, now expanded to include six more nations, boasts a combined GDP that surpasses that of the G7. This information was shared by Sigel during a CNBC interview.
The recent activities indicate a move away from traditional Western financial systems.
Russia’s Involvement and Bitcoin’s Role
Sigel also pointed out that Russia’s Sovereign Wealth Fund is investing in Bitcoin mining and artificial intelligence infrastructure throughout the BRICS bloc.
The objective is to create a regional system for settling international trade using Bitcoin, which could potentially lessen dependence on the U.S. dollar.
In the same interview, Sigel painted a very bullish picture for Bitcoin, comparing it to the 2020 U.S. election. He observed that Bitcoin’s recent rally coincides with increased betting odds for a Trump victory and a pattern of high volatility following election results.
For many, Bitcoin represents a decentralized financial instrument that could offer BRICS countries an alternative to dollar-dependent systems.
Bitcoin mining, the procedure of generating new Bitcoins and verifying transactions on the blockchain, necessitates significant energy and infrastructure.
Nonetheless, it could empower BRICS nations to carry out trade independently of the dollar’s influence.