Donald Trump Targets BRICS Over Plans to Bypass the US Dollar With Crypto

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As a seasoned crypto investor with a keen eye for global financial trends, I find the recent developments between President-elect Donald Trump and the BRICS bloc particularly intriguing. Having navigated through several market cycles, I’ve learned that geopolitical tensions often have profound impacts on currency dynamics and investment strategies.

The newly elected President Donald Trump has delivered a strong caution to the BRICS group. He encouraged its nations to reconsider their intentions of developing a new currency to take the place of the U.S. dollar in global commerce.

Trump, well-known for championing “America First,” made it clear that actions like this would result in significant repercussions. These penalties could extend to a 100% tax on products originating from BRICS countries and potential restrictions on trading with the U.S. market.

BRICS Faces Trump’s Pushback on De-dollarization Efforts

On November 30th, Trump posted on his Truth Social account, urging BRICS nations to make a strong pledge against creating or backing a competing currency. He underscored that the United States would not accept actions aimed at weakening the dollar’s preeminence.

As a crypto investor, I can’t help but notice the growing movement among BRICS countries to potentially phase out the U.S. Dollar. However, it’s crucial for us to take action. I firmly believe that these nations should make a clear promise not to establish a new BRICS currency or back any alternative currency aiming to replace the dominant U.S. Dollar. If they fail to do so, they must be prepared for the imposition of 100% tariffs and the potential loss of access to the thriving U.S. economy. This is a clear message I’m sending out.

As an analyst, I find it noteworthy that this cautionary statement resonates with Donald Trump’s election pledge to preserve the dominance of the US dollar as a global reserve currency. It appears that his administration is proactively investigating potential penalties against nations pursuing policies aimed at diminishing the use of the US dollar, often referred to as de-dollarization.

The group known as BRICS (consisting of Brazil, Russia, India, China, and South Africa) has been leading discussions on de-dollarization since 2023. These conversations have gained traction following a summit where the member countries deliberated over alternative payment systems, such as using the Chinese yuan and digital currencies backed by blockchain technology.

Market experts noted that these digital currencies might circumvent U.S. sanctions, potentially paving the way for an innovative system in global commerce.

For the first time in more than a decade, BRICS has broadened its membership, inviting Iran, Saudi Arabia, the UAE, Ethiopia, and Egypt as new members. Over 34 other countries have also shown interest in joining this group. The goal is to boost their impact on the worldwide economy by increasing their influence. They aim to do this by using local currencies and alternative banking systems, which could help them reduce dependence on the US dollar and potentially dodge Western sanctions.

Onlookers suggest these actions might alter the trade patterns globally. Yet, Trump’s firm approach hints at a possible intensification of economic disputes between the U.S. and the BRICS countries.

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2024-12-01 14:16