The world is moving toward a new word order, which will undoubtedly impact the crypto industry. Many in the global economy mock it as “The Fall of the United States of America.” Since the beginning of COVID-19, the U.S. economy has taken a hard stance. As a result of these events, investors turned to DeFi for financial relief and survival.
Get this – there is a new economic power at play – BRICS. With it comes a new direction for digital assets. The so-called BRICS nations (Brazil, Russia, India, China, and South Africa) have made strides in crypto and the international economy, raising questions about the dollar’s role in the global economy.
Is this the new world order?
In recent years, the BRICS nations have experienced rapid economic and political power growth, significantly impacting the global economy, especially the U.S. dollar. These nations have completely abandoned the use of USD for trade in favor of the Chinese Yuan or their own currency.
The BRICS nations have also worked to increase their trade and economic cooperation, which has helped to increase their collective economic power. The shift away from the dollar as the world’s reserve currency is a key factor driving the recent conversation. The BRICS countries’ efforts to reduce their reliance on the dollar have resulted in a drop in demand for the currency.
Moreover, the BRICS nations have made significant strides in the crypto industry. In detail, China launched its digital yuan in 2020, which is currently being tested in multiple cities nationwide.
Additionally, India has been investigating the possibility of launching its CBDC while having some of the most stringent crypto taxes regimes globally. As for Russia, the ongoing war with Ukraine has shown a crypto hand not experienced before. Brazil and South Africa have also been active in crypto, with both countries experiencing significant adoption growth.
The BRICS breakout could have significant consequences for the United States. The US dollar’s status as the world’s reserve currency has allowed the country to finance its massive trade deficits and government debt at low-interest rates. If the demand for the US dollar were to decline, it could lead to higher interest rates and inflation, which could have a negative impact on the US economy.
Several trades kicked off in the better part of the last week of March. At the current speed and global developments, only time and patience can truly tell the direction in which the new world order will unfold. How will crypto thrive in the new marketplace?
Crypto under the new world order
The current trade situation with the US dollar and the rise of the BRICS nations can play out in several ways. Nonetheless, it is evident that decentralized finance, which is beyond the control of governments, will be a most welcome savior. One concern stands out: how will U.S. crypto investors survive the increased government crackdown on cryptocurrencies?
Crypto elites, such as Brian Armstrong, have quickly jumped on the trend, and their observation is widely shared by many. Many investors in the United States are outraged over the loss of their savings and investments due to the most recent bank failures. The subsequent bank rate hikes have driven the common foe to desperation.
Furthermore, there has been a double standard in how the US has dealt with crypto criminals like SBF, who funded political campaigns during the Biden administration, which is not good.
If you have been in the financial industry since the Great Depression of 2007-2008, then you know what is happening is nothing new. the world has witnessed great downturns in the last two years, yet Bitcoin has stood in defiance of every hurdle sent its way. Probably crypto is the way out. Or perhaps it is the very new world order. Every man for himself and God for us all.
It’s never too late to jump on the crypto bandwagon – this is not a piece of investment advice. However, BTC stands to soon surge above $30,000. According to CoinMarketCap, Bitcoin stands at $27,921. Ethereum price sits at $1,788 at the time of writing.
