Messari: BRICS+, MBridge, and the new global order

Author: Mohamed Allam, Research Analyst; Translated by: 0xjs@Jinse 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 BRICS will be renamed BRICS+ to reflect its increasing number of members.

Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) will join BRICS+. Although this expansion will occur gradually, 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, 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 under 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 real goal is the convenience of the blockchain infrastructure and its usage.
• Ongoing MBridge Testing: As part of the ongoing network tests, 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 capabilities of the system, but it is important to note that it is 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 could be to create a unified currency using a basket of BRICS member countries' CBDCs, but as the network evolves, this idea remains speculative.
• BRICS and Global Financial Transformation: As the BRICS countries position themselves to reshape the global financial landscape, the possibility of decoupling from the US dollar is becoming increasingly apparent. Former US President Donald Trump recently stated that any country that moves away from the dollar may face a 100% tariff on goods entering the United States, indicating that people are becoming more aware of the changes in global finance.

That 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 be fully aware of the many things happening behind the scenes.

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

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