The BRICS Bitcoin Revolution: How China Could End U.S. Dollar Dominance

 

China and BRICS Nations Eye Bitcoin: Could This Be the Smartest Geopolitical Move of the Century?”

In the evolving global financial landscape, Bitcoin is once again taking center stage — this time, with potential backing from some of the world’s most powerful emerging economies. A growing chorus of experts suggests that China and BRICS nations (Brazil, Russia, India, China, and South Africa) could be the next major catalysts for Bitcoin adoption, potentially reshaping the international monetary system and challenging the dominance of the U.S. dollar.

One of the most vocal advocates of this idea is crypto investor and analyst Fred Krueger, who recently proposed that BRICS nations should strategically integrate Bitcoin into their financial systems. According to Krueger, such a move would not only represent a bold leap into the future of decentralized finance but also serve as “the smartest geopolitical move of the century.”

Bitcoin as a Strategic Weapon in Global Finance

In a series of posts on X (formerly Twitter), Krueger outlined a provocative scenario — envisioning China and BRICS adopting Bitcoin as part of their national financial frameworks. He argued that Bitcoin’s decentralized nature could offer these nations a way to circumvent U.S. financial hegemony, particularly as geopolitical tensions continue to rise.

“It breaks U.S. dollar control,” Krueger wrote. “It rewards energy production, and it turns BRICS into a hard-money powerhouse. Bitcoin wouldn’t just be good for China — it would be GREAT.”

Krueger’s statement highlights a growing sentiment among analysts who believe that cryptocurrencies — once dismissed as speculative — are now becoming tools of economic sovereignty. For China, embracing Bitcoin could represent a calculated step toward minimizing dependency on the dollar while asserting influence in the evolving global digital economy.

De-Dollarization and the Rise of the Yuan

The idea comes at a time when China is accelerating its de-dollarization efforts, seeking to expand the international use of the yuan and strengthen its financial autonomy.

Recent reports indicate that Beijing is working to develop an alternative global payments system denominated in yuan. This system aims to provide developing nations with a way to conduct cross-border transactions without relying on the U.S. dollar.

China has also begun helping partner nations shift their debt from dollar-denominated loans to yuan-based financing with lower interest rates — an effort to build what some analysts call a “yuan bloc.”

In a statement earlier this month, People’s Bank of China (PBOC) Governor Pan Gongsheng underscored the government’s ambitions. Speaking at a high-level financial meeting, he said China would “actively promote the internationalization of the yuan and expand its use in trade.” The removal of previously cautious language — such as “prudent and steady” — from official communications signals a new level of confidence in the yuan’s global role.

If Bitcoin were to be introduced into this strategic mix, it could amplify China’s ambitions. As the world’s largest energy consumer and one of the biggest producers of rare-earth materials and microchips, China has the infrastructure to leverage Bitcoin mining and energy-backed digital assets in unprecedented ways.

The BRICS Factor: A New Global Financial Bloc

The BRICS nations, representing over 40% of the world’s population and roughly a quarter of global GDP, have already expressed interest in creating an alternative financial framework to the Western-led system.

Earlier this year, the BRICS bloc explored the idea of developing a new settlement currency based on a basket of member currencies and potentially backed by gold or other tangible assets. Integrating Bitcoin — or even using it as a reserve diversification asset — could give the bloc an edge in achieving monetary independence from the dollar.

Analysts note that this idea aligns with the BRICS’ long-term vision of reshaping global trade through digital innovation and decentralization.

“By incorporating Bitcoin, BRICS could become the first major economic bloc to fuse digital assets with real-world trade,” said one international economist. “That would completely redefine how global finance operates.”

Global Bitcoin Adoption Gains Momentum

While the possibility of China and BRICS adopting Bitcoin remains theoretical, the global momentum toward Bitcoin adoption is undeniable.

Following the lead of the United States — which has indirectly endorsed Bitcoin through ETFs and institutional custody frameworks — other nations are beginning to recognize Bitcoin as a strategic reserve asset.

Countries like El Salvador and Bhutan have already integrated Bitcoin into their national financial systems, while the United Kingdom, Ukraine, and the Philippines have adopted regulatory frameworks to facilitate Bitcoin-based innovation.

In a surprising move, France recently proposed creating a national Bitcoin reserve of 430,000 BTC — approximately 2% of the total Bitcoin supply — over the next decade. The plan, if approved, would make France the first European country to hold Bitcoin as part of its sovereign reserves.

According to the proposal, the accumulation would occur through a combination of public mining initiatives, energy surplus utilization, seized digital assets, and daily micro-purchases through regulated savings programs. This approach reflects a growing global trend of integrating Bitcoin into national wealth strategies rather than viewing it purely as an investment asset.

Energy, Mining, and Geopolitical Leverage

If China were to adopt Bitcoin or promote large-scale mining under state oversight, it could turn its massive energy production capacity into a geopolitical advantage.

Krueger’s argument emphasizes how Bitcoin can incentivize efficient energy production — including renewable sources like hydro and nuclear — while also providing a “digital export” that converts excess energy into a store of value.

This concept resonates with energy economists who see Bitcoin mining as a way to stabilize power grids, monetize surplus energy, and promote technological innovation.

For BRICS nations rich in natural resources — such as Russia (oil and gas) and Brazil (hydropower) — Bitcoin could represent a new form of commodity-backed financial sovereignty that complements their physical exports.

What Happens Next?

Although there are no official signs that China or other BRICS nations are about to announce Bitcoin adoption, experts say the strategic logic is becoming harder to ignore.

For now, Beijing’s focus remains on the digital yuan (e-CNY), a central bank digital currency (CBDC) that embodies state control rather than decentralization. However, some analysts believe that a hybrid model — where both state-backed and decentralized assets coexist — could emerge in the next phase of global financial evolution.

“Bitcoin doesn’t need government approval to thrive,” said a Shanghai-based blockchain researcher. “But if governments start using it strategically, especially BRICS economies, that would accelerate the shift toward a multipolar financial system faster than anyone expects.”

Conclusion

The idea of BRICS and China adopting Bitcoin might still sound radical, but so did the concept of decentralized money a decade ago.

As global tensions rise, de-dollarization accelerates, and traditional systems strain under debt and inflation, Bitcoin’s role as neutral global money looks increasingly viable. Whether BRICS leaders choose to embrace it remains to be seen — but the conversation has already begun, and the implications could be historic.

If Fred Krueger’s vision plays out, Bitcoin may not just remain a hedge or investment asset — it could become the foundation of a new geopolitical order.

Source

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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