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!.
