Messari: BRICS+, MBridge, and the New Global Order

Author: Mohamed Allam, Research Analyst; Compiled by: 0xjs@Golden Finance

This week is the BRICS summit week, and an important global alliance is expected to be established here. 35 countries have confirmed their attendance, and the BRICS (BRICS) will be renamed BRICS+ (BRICS+) to reflect the increasing number of its members.

Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) will join BRICS+. Although this expansion will be gradual, the summit is expected to provide more insights into the potential development of a new global order.

In this article, I want to emphasize the importance of MBridge, which is a topic I discussed earlier, especially regarding the latest developments in the UAE:

• MBridge Review: MBridge, also known as the Multi-CBDC Bridge, is a multi-CBDC platform designed to support real-time, peer-to-peer cross-border payments and foreign exchange transactions using CBDCs. The platform is built on the MBridge Ledger blockchain, ensuring compliance with the policies, legal requirements, regulations, and governance needs of specific jurisdictions.
• UAE Adopts CBDC: The UAE recently launched its own CBDC with the approval of the central bank, marking a significant shift towards blockchain-based infrastructure. This highlights that countries are not only focused on the concept of "cryptocurrency" but also on leveraging blockchain technology. The term "currency" can often be misleading, as the true goal is the convenience of blockchain infrastructure and its utilization.
• Ongoing MBridge Testing: As part of the ongoing network testing, several transactions have been completed on MBridge, including a transfer of 50 million dirhams from the UAE to China. These tests aim to explore the system's capabilities, but it is important to note that they are still in the experimental phase. These are steps to understand how the network operates on a large scale.
• Future Challenges: Despite progress, MBridge still faces significant challenges, particularly in terms of liquidity and foreign exchange transfer rates. One possible solution might be to create a unified currency using a basket of BRICS member countries' CBDCs, but this idea remains speculative as the network develops.
• BRICS and Global Financial Transformation: As the BRICS countries aim to reshape the global financial landscape, the possibility of decoupling from the dollar is becoming increasingly apparent. Former U.S. President Donald Trump recently stated that any country moving away from the dollar could face a situation where a 100% tariff is imposed on goods entering the United States, indicating a growing awareness of the changes in global finance.

That being said, this is just a waiting game. The BRICS countries are on the rise, and the landscape is changing. The BRICS nations are positioning themselves and may establish a new global order, while the West may not yet fully realize that many things are happening behind the scenes.

As I discussed in "Death by a Thousand Cuts," all these small factors could ultimately lead to a gradual detachment from the dollar.

The next few years are crucial for the world, but for us cryptocurrency enthusiasts, we have already become very accustomed to change.