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Will BRICS challenge the petrodollar system? Insights from BitBoy Crypto
Amid rising tensions between Iran and Israel, along with geopolitical uncertainties and regulatory changes, the cryptocurrency market sees a surge in activity this week. BitBoy Crypto’s recent analysis delves into how global events are shaping the world of cryptocurrencies, highlighting potential impacts and emerging trends.
Here’s what’s happening.
The challenge to dollar dominance: BRICS on the rise
Known as BitBoy Crypto, Ben Armstrong explains how geopolitical changes are testing the dominance of the US dollar, particularly with emerging economic blocs such as the BRICS – Brazil, Russia, India, China and South Africa – gaining momentum. Armstrong suggests that major oil-producing nations such as Saudi Arabia and the United Arab Emirates could start trading in currencies other than the dollar.
Armstrong explores the significance of the proposed BRICS Development Bank, which could rival traditional dollar-linked institutions. This shift could reshape international trade and finance.
Understanding the petrodollar system
The analysis traces the history of the petrodollar system, which has anchored global oil trade in dollars since the 1970s. Armstrong speculates on the consequences if countries like China, Russia and Iran reduce their dependence on the dollar, potentially weakening their global status.
Impact on energy markets
In the context of growing geopolitical tensions and US sanctions against Russia and Venezuela, Armstrong highlights how conflicts in regions such as Ukraine and the Middle East can disrupt global energy markets. These developments have broader implications for financial ecosystems, including cryptocurrencies. Armstrong recommends staying informed about these events, as they impact both traditional and cryptocurrency markets.
Debashree Patras
Fun-loving and cheerful, a passionate blockchain and cryptocurrency writer who knows no boundaries… connect if you share the same passion. With over 10 years of writing experience, I’m an accidental crypto journalist, exploring and learning all the dynamics of the sci-fi action-packed crypto world. Currently, focusing on cryptocurrency news and price data. With a passion for research and testing my skills, I am slowly entering the cryptocurrency arena to bring new knowledge every day.