Trump BRICS Tariff Threat: Bitcoin as a Rising Global Currency?

- Trump warned that BRICS nations would face a 100 percent tariff if they pursue a dollar-alternative currency - Bitcoin is Gaining Attention as a New Financial Hedge [Unblock Media] President-elect Donald Trump’s mention of a 100% tariff threat on BRICS countries is expected to cause significant waves in the global economy. BRICS, an economic bloc consisting of Brazil, Russia, India, China, and South Africa, has been moving towards adopting a common currency, which could threaten the dominance of the US dollar. Against this backdrop, Bitcoin is gaining attention. Trump stated on the Truth Social platform that he would impose a 100% tariff on BRICS countries if they create a new currency to replace the US dollar or support another currency. This can be seen as an effort to maintain the hegemony of the US economy. BRICS countries are already trying to promote trade using their own currencies and establish independent financial systems. For example, China and India have been purchasing Russian oil using their national currencies. This situation might create a favorable environment for Bitcoin. Trump’s supportive stance on Bitcoin is also notable. Recently, in his 2024 presidential campaign, he promised to position the US as a global leader in the cryptocurrency sector. He proposed a national Bitcoin reserve, hinted at cryptocurrency-friendly regulatory changes, and announced the formation of a Bitcoin and cryptocurrency advisory board. Trump’s NFT collection garnered significant attention from the outset, recording many sales and showcasing his enthusiasm for digital assets. Additionally, his family’s cryptocurrency platform, World Liberty Financial, handles a variety of cryptocurrency assets, allowing users to experience the convenience and potential of cryptocurrencies. These actions demonstrate the market impact of Trump’s pro-Bitcoin stance. The political and economic complexities among BRICS countries also need to be examined closely. While China and Russia share similar viewpoints, India and Brazil have differing stances on a dollar-alternative currency, limiting their cooperation potential. India maintains strong independence for its economic development, and Brazil also prioritizes the independence of its economy. These disagreements are major factors making the adoption of a common currency difficult. Bitcoin advocate Anthony Pompliano also assessed that the BRICS tariff issue would have a positive impact on Bitcoin. He predicted a future dual system of using dollars for transactions and Bitcoin for saving. Pompliano’s remarks contribute to the perception that Bitcoin can replace the role of the dollar in international trade. During times of economic uncertainty, investors could preserve their asset value through Bitcoin and conduct transactions with dollars during normal times. This dual system could provide both stability and flexibility. Finally, considering the political and economic complexities involved in BRICS countries adopting a common currency, it is unlikely their efforts will succeed immediately. However, these discussions themselves amplify uncertainty over the US dollar’s hegemony, thereby enhancing the appeal of Bitcoin as an alternative asset. There are many factors woven into this scenario that underscore the potential growth of Bitcoin. Continued attention to the evolving role of Bitcoin is necessary.