BRICS: BlackRock Says Crypto Can Protect Against US Economic Crisis
Amid BRICS‘ push to curb reliance on the dollar, asset manager BlackRock has pointed out that cryptocurrencies, like Bitcoin, could be a safety net against an anticipated US economic crisis. The firm has noticed a growing number of its clients turning to Bitcoin as a hedge against potential economic downturns that might whack the dollar. In recent years, BRICS nations have been keen on de-dollarization, prompting a global shift and a surge in the use of local currencies within the alliance. As a result, the dollar’s global usage has taken a hit, prepping many to brace for the worst.
Interestingly, BlackRock underscored the dwindling dominance of the US Dollar, citing the Atlantic Council’s Dollar Dominance Meter which shows the greenback’s share in global reserves has slid by over 14% since 2002—the same year BRICS came into being. The alliance has been relentless in challenging Western financial clout, fostering their own payment systems and championing national currencies. Amidst this, digital assets have been gaining traction. BlackRock’s recent report highlighted Bitcoin’s promising potential to shield investors from an impending US economic crisis. They noted the worries about US federal deficits and debt have bolstered the appeal of alternative reserve assets, explaining a significant portion of Brazilian institutional interest in Bitcoin. For the full scoop on these developments, check out the detailed report on watcher.guru.