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Brazil's Proposal for BRICS Currency and Geopolitical Reforms
657 sats \ 9 comments \ @bitcoinerRealista 21 Aug 2023 bitcoin
such a lost opportunity to use bitcoin...
Brazil's Proposal for BRICS Currency and Geopolitical Reforms
Translated and summirized from UOL, written by Jamil Chade.
Brazil is set to propose the creation of an embryonic currency within the BRICS framework as it takes over the BRICS presidency in 2025. The objective is to explore alternatives to the dominant role of the US dollar in international trade and finance. The move is not intended to directly challenge the dollar's dominance but to consider new options in a changing global landscape. This initiative aligns with the broader BRICS agenda of reducing dependency on the dollar, potentially reshaping the geopolitical balance.
Paulo Nogueira Batista Jr., a Brazilian economist, highlighted the US's use of the dollar as a weapon in imposing sanctions on countries like Venezuela, Iran, Afghanistan, and Russia. A potential currency, tentatively named "R5," could consist of a basket of the five member countries' currencies. This currency could serve as a unit of account and replace the dollar for internal financial mechanisms within the BRICS bloc. However, it would not replace the individual national currencies of the member states.
Alongside currency discussions, BRICS leaders are addressing broader geopolitical changes. The summit emphasizes the outdated nature of the current international system and underscores the need for reforms. Among the topics being discussed are a common stance on the reform of international organizations and the expansion of the BRICS alliance. The expansion, while seen as a way to enhance influence, also raises concerns about potential power imbalances and the risk of overshadowing national interests.
The retreat aims to reorient the geopolitical map by demonstrating the emerging power and relevance of BRICS. As Brazil takes the lead, it introduces currency discussions that align with its objectives of increasing its global influence while advocating for alternative options in the international monetary system. The summit marks a significant step toward a more multipolar world order.
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31 sats \ 0 replies \ @SpaceHodler 21 Aug 2023
The best course of action for any government is not to adopt Bitcoin as a legal tender, but to print their own shitcoin and dump it on their slaves to buy BTC. That way the state gets richer at the cost of the slaves, which is the point of the state. With the rising productivity, the slaves' output grows, while all you need to give them (i.e. your cost of herd maintenance) is a cricket meal, shelter and a PornHub subscription.
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21 sats \ 6 replies \ @edulopesf 21 Aug 2023
Do not expect any country to take favorable actions towards bitcoin.
  • El Salvador just started using Bitcoin because they didn't had their own currency. They had US Dollar as official currency.
Any country that works under 'Central Bank' rules has to rely on their own currency in order to pay for their expanses. IF they start using Bitcoin, it means they are giving up the control to finance itself.
Presidential Democracies like Brazil needs to "buy" support from their congressmen in order to proceed with their political agenda. That means they need to print or use tax money to keep things running.
If Bitcoin becomes the norm in a country like Brazil, the whole political system becomes obsolete.
It's especially dangerous (for the government) if a movement like that starts on Import-Export companies, since they usually are major distributors, it'll be just a step so they start selling their products inland accepting BTC. If that happens, all monetary control over imports/exports WILL BE LOST and the country's 'Trade Balance' will fall apart.
That would result in huge depreciation from the local currency against the Dollar and Bitcoin.
EVEN I, that I truly want BTC to become the norm, I think, for a softer transition, it would be better people started using Bitcoin before being used for import/export. Local population, without the 'know how' would suffer a lot until things got better. It could even jeopardize the Bitcoin reputation.
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0 sats \ 5 replies \ @Undisciplined 21 Aug 2023
There are other countries in the region that also don't really have their own currencies. If El Salvador is clearly successful with Bitcoin, I could see it catching on throughout the smaller Central American and Caribbean nations.
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21 sats \ 4 replies \ @edulopesf 21 Aug 2023
True, that's because, as beforementioned said, they don't have their own currency, the whole system is already adapted to work with a foreign currency, in those situations the transition to Bitcoin will be faster and softer...
El Salvador is the best case study for economies like theirs.
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0 sats \ 3 replies \ @Undisciplined 21 Aug 2023
I specifically brought it up because you led with
Do not expect any country to take favorable actions towards bitcoin
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21 sats \ 2 replies \ @edulopesf 21 Aug 2023
Well, that doesn't mean local governments will be favorable. El Salvador seems to be an exception so far... It means it would be easier for these countries.
Actually I would like to know how much the population of El Salvador is using bitcoin.
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0 sats \ 1 reply \ @Undisciplined 21 Aug 2023
I've been curious about the extent of Bitcoin use in El Salvador, too. It's hard to imagine people aren't still using lots of specie for their regular transactions.
The big hurdle for small Caribbean countries will be that tourists bring in tons of dollars, so there's strong organic pressure keeping that the locally preferred currency.
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21 sats \ 0 replies \ @edulopesf 21 Aug 2023
I've just opened a new thread asking... here: #230693
About the tourists, that's also true... And might be a negative point towards adoption of BTC since there would be no apparent incentive to use bitcoin.
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10 sats \ 0 replies \ @jk_14 21 Aug 2023
still not brave enough to say the only proper word: Bitcoin
I just see this potential currency consists of a basket of the five member countries, where every country trust KGB, every country trust China (especially India ;) and all of them trust yet in Brasil's wise monetary policy... :)
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