Will BRICS allow trading of bitcoins in their countries?
9 October 2017 Posted / 12919 Views
The BRICS Summit was held in Xiamen, from 3rd to 5th of September where every country(India, Brazil, Russia, China and South Africa) of the association participated. A major agenda that was discussed by the five countries was to create a cryptocurrency of their own. The committee has discussed having a joint digital currency which will be utilized for the process of settlements and as an alternative payment tool amongst the countries. If BRICS create a cryptocurrency of their own, it could possibly discard the despotism of the local currencies. Also, the settlements and payments which will be carried via cryptocurrencies will give a transparent and decentralized factor.
While a mutual and virtual cryptocurrency is in the making, people have already started speculating about the competition that will be seen amongst the USD and the upcoming virtual currency. If a BRICS cryptocurrency comes into existence, it might probably possess the adaptability of the present cryptocurrencies with the extra advantages of being supported by the leaders of a big economic trading union which would offer traders conviction in a cryptocurrency that many of the currencies, presently, are lacking. Since it will be a currency formed by the five nations of the BRICS, it would be an amalgamation of the features of their native currencies in accordance with the jurisdictions of the respective countries. This mutual currency could make a constructive hybrid currency that can easily be traded as well as it could make the exchange rates between BRICS states and amongst their partnership more fair and impartial.
While BRICS, must be in the talks to form a new cryptocurrency of their own the organization is also discussing to firmly restrict the utilization of bitcoins in their countries, which could possibly replace bitcoins. Every country has their own issues over bitcoins, some say that has the criminality factor which facilitates illegal and terrorist-related activities, while some of the countries believe that they are capable to make their own version of bitcoins, which will be much secure and less volatile. Taking the concept of bitcoins, BRICS is making their mind for their own virtual currency but will possibly also discard the reigning cryptocurrencies from their economies. The BRICS consists of the fastest growing and developing countries of the world, and if these countries prohibit bitcoin, then it will possibly lead to a fall in the bitcoin prices and market cap. But, again this will put bitcoin in testing time, where it has to prove its resilience and unfazed characteristics to the world.