China and Russia Drive New World Monetary Order Based On Bitcoin

Happy weekend Lion’s I trust you have all been safe and well throughout this period of up. Don’t forget to take profits along the way so you don’t lose out. I made that mistake in 2021 and lost the lot, albeit it was a rug pull in the end but lessons learned.

Today’s article is quite an interesting one and it involves breaking news about bilateral agreements led by China and Russia who are now establishing their own financial system built on Blockchain technology. China, despite being anti Bitcoin is now working with Russia to develop a currency built on it

The global economic landscape has been witnessing major shifts since the war between Ukraine and Russia with traditional powerhouses like Russia and China strategically manoeuvring away from reliance on the U.S. dollar. The catalyst for this paradigm shift? The exponential rise of crypto currency. like Bitcoin and Ethereum coupled with growing concerns over the stability of the dollar including sanctions placed on Russia for their unsanctioned war on Ukraine.

This is starting to paint a picture of massive turmoil in the global economic scheme of things with the The US Dollar performing at it’s worse since 2020

The U S Dollar Sink Whole

The first clue to the impending change emerged as the U.S. dollar charted its worst year since 2020. Federal Reserve policies which include massive money printing have triggered fears of a dollar crisis. On top of the current issues the value of crypto currencies notably Bitcoin and Ethereum surged to new highs. As Wall Street celebrated with anticipation over potential gains due to the rise in Bitcoin ETF adoption the world's attention turned to the growing dominance of digital assets now sitting at over USD 2.2 Trillion.

China and Russia two economic powerhouses with a shared ambition to diminish the dollar's hegemony are said to be leveraging the disruptive potential of blockchain technology as they work towards establishing a groundbreaking bilateral agreement.

China with its strengths in digital innovation and Russia with its strategic resource reserves are unveiling plans to create a payment system underpinned by Bitcoin's blockchain and they aren’t alone in their movement with other developing nations joining the movement to reverse the US Dollar dominance This move signifies a seismic shift in global finance with respected economists cautioning that it poses a greater threat to American hegemony than nuclear weapons.

BRICS to Challenge U S Dollar Dominance

The BRICS nations which include Brazil, Russia, India, China and South Africa have long harboured aspirations to challenge the dollar's supremacy. Led by Russia's President Vladimir Putin these nations are determined to reshape the global financial order. At a recent summit reported on by ALJAZEERA. Putin pointed out the irreversible momentum of de-dollarization, signalling the dawn of a multipolar monetary system. This sentiment resonates with developing countries seeking alternatives to the dollar's stranglehold on international trade and finance.

While the vision of a post dollar world is tantalizing for these nations the path forward is already fraught with challenges. Experts highlight the need for institutional frameworks and common standards to realize a viable alternative currency. Amid speculation about a BRICS currency or the use of crypto currencies practical considerations come to the forefront. Questions about stability, convertibility and market liquidity make up some of the biggest considerations these nations need to plan for and showcase the complexities inherent in challenging the dollar's entrenched position.

To set the scene and showcase to other nations they mean business Russia and China have stopped utilising Western currencies in their bilateral trade opting instead for settlements in Rubles and Yuan. This strategic partnership shows other BRICS Nations their commitment to fostering economic sovereignty and resilience against global turbulence. Current bilateral trade between the two nations is flourishing, although that can be put down to the fact that both these nations aren’t in the good books of the rest of the world currently and their citizens need to recognise the seismic implications of this shift away from the dollar centric paradigm. This isn’t the first time nations have attempted to drift away and it is usually detrimental to their citizens.

The Future Of Finance

The world is currently navigating choppy waters of geopolitical realignment and monetary innovation but it’s not so much because of China and Russia. Coming out of COVID with massive inflation due to government spends, declining populations and many wars occurring around the world with more developing nations rising which also brings up past injustices, many of which stem from the collapsed British Empire which left many of these developing nations in a state of ruin.

Many are looking for a fairer and more inclusive participatory system that takes the politics out of earning money and at current, Crypto currency seems to be providing them with hope but we are yet to see if Decentralised Finance (DE-Fi) can deliver.

First point of call is to address the liquidity and stability issues. If that can be done, then there might be a new Global Currency which, has been a dream of many nations and attempted many times throughout human history with the only real centrally agreed upon item of value being Gold.

Which is another great article for the future. People have tried one world currencies in the past with resistance, but the current climate looks like we are heading there anyway.

Image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.

Posted Using InLeo Alpha