The BRICS, formed by Brazil, Russia, India, and South Africa, in addition to China, have been challenging the United States of America on various fronts, including Bitcoin and the US dollar. While the USA primarily defends the dollar, President Donald Trump’s statements have fueled speculation that they may also embrace Bitcoin if he wins the elections. Bitcoin, often seen as a complementary currency suitable for savings, has been gaining popularity in countries like El Salvador. Trump has even suggested keeping seized Bitcoins as a strategic reserve, signaling a shift towards incorporating Bitcoin into US monetary policies if he remains in power.
On the other hand, China has long been opposed to Bitcoin, implementing a series of bans, including a recent ban on crypto mining. Despite these restrictions, China still ranks as one of the top countries in terms of Bitcoin hashrate, highlighting the struggle between financial freedoms provided by Bitcoin and China’s centralized control over its currency. With the USA aiming for global crypto dominance, China’s resistance to cryptocurrencies and endeavors like the digital yuan further deepens the divide between the two economic powerhouses.
Adding to the rivalry is the battle for the dominance of fiat currencies, with China introducing its central bank digital currency (CBDC) in contrast to the USA’s stance against a CBDC issuance during Trump’s term. The push towards CBDCs reflects China’s and the USA’s opposing views on financial freedom and transparency in monetary transactions. As China and the USA clash over crypto and fiat currencies, the possibility of a new BRICS currency emerges, presenting a potential alternative to the US dollar with the support of economies like India and Brazil, albeit under China’s dominant influence within the coalition.
Prominent gold supporter and Bitcoin critic Peter Schiff has criticized Trump’s vision of making the USA the epicenter of the global crypto industry, instead praising China’s approach. Schiff highlighted China’s disinterest in Bitcoin, citing its ban on mining and focus on manufacturing essential goods. While China’s production capabilities are significant, the USA remains ahead in terms of GDP per capita, underscoring the different economic models and approaches pursued by the two nations. The ideological clash between China and the USA, mirrored in their conflicting views on Bitcoin and financial freedoms, reflects broader geopolitical tensions within the financial sector and beyond.
In conclusion, the rift between the BRICS countries, led by China, and the USA intensifies as they compete in the realm of cryptocurrency and traditional fiat currencies. While the USA navigates towards incorporating Bitcoin into its monetary policies, China’s resistance to decentralized currencies and CBDC pursuits underscores the ideological differences between the two superpowers. The emergence of a new BRICS currency challenges the dominance of the US dollar on a global scale, with implications for cross-border transactions among the member countries. As the world witnesses a battle of financial paradigms, the clash between China and the USA reveals deeper divisions in political and economic ideologies that shape the future of monetary systems and global economic landscapes.
