According to Brazil’s president Luiz Inácio Lula da Silva, developing countries should abandon the U.S. dollar and strengthen their own national currencies. During a speech at the New Development Bank in Shanghai, Lula expressed his nightly pondering: “Why do all countries have to base their trade on the dollar?”
Recent discussions have focused on removing the U.S. dollar’s status as the global reserve currency, and this idea is becoming more of a reality in 2023. Speaking at the New Development Bank in Shanghai, also known as the ‘BRICS Bank,’ President Lula insisted that the greenback’s global dominance should end, as reported by the Financial Times.
“Who decided that our currencies were weak or valueless in other countries?” Lula questioned during his speech. “Why can’t a bank like that of the BRICS have a currency to finance trade relations between Brazil and China or Brazil and other countries? It’s difficult because we are unaccustomed [to the thought]. Everyone depends on just one currency,” he added.
Lula’s statements come after China signed a new deal with Brazil and completed its first Liquefied Natural Gas (LNG) payment in yuan. Russia has also been committed to settling trades using other countries’ currencies. Moreover, BRICS members (Brazil, Russia, India, China, and South Africa) are working towards creating a new BRICS-based reserve currency. In Shanghai, Lula voiced his curiosity about the world’s dependence on the greenback.
“I ask myself every night why all countries have to base their trade on the dollar,” Lula emphasized. “Why can’t we trade using our own currencies? Who decided that the dollar would be the dominant currency after the gold standard disappeared?” he inquired.
Financial Times reporters Joe Leahy and Hudson Lockett concluded their report on Lula’s statements by noting that any efforts to undermine the U.S. currency “in the near term will face a substantial challenge.” They highlighted that Brazilian miners regularly engage in dollar-denominated trades. However, officials from Brazil and the BRICS nations are not alone in discussing the potential decline of the dollar’s dominance.
The Philippines’ central bank governor, Felipe Medalla, recently mentioned in an interview that the greenback’s prominence will gradually diminish. “We want a multi-currency world, but so far, other currencies do not have the necessary international markets to support [it]. This is the advantage of the U.S. dollar – there’s a vast market for government securities,” Medalla stated. “I think over time, the dollar will be less and less dominant, but it’s happening very slowly,” he added.
Do you think a shift away from the U.S. dollar as the global reserve currency is inevitable, and what impact do you believe this would have on the global economy and financial systems? Share your thoughts about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.
According to Brazil’s president Luiz Inácio Lula da Silva, developing countries should abandon the U.S. dollar and strengthen their own national currencies. During a speech at the New Development Bank in Shanghai, Lula expressed his nightly pondering: “Why do all countries have to base their trade on the dollar?”
Recent discussions have focused on removing the U.S. dollar’s status as the global reserve currency, and this idea is becoming more of a reality in 2023. Speaking at the New Development Bank in Shanghai, also known as the ‘BRICS Bank,’ President Lula insisted that the greenback’s global dominance should end, as reported by the Financial Times.
“Who decided that our currencies were weak or valueless in other countries?” Lula questioned during his speech. “Why can’t a bank like that of the BRICS have a currency to finance trade relations between Brazil and China or Brazil and other countries? It’s difficult because we are unaccustomed [to the thought]. Everyone depends on just one currency,” he added.
Lula’s statements come after China signed a new deal with Brazil and completed its first Liquefied Natural Gas (LNG) payment in yuan. Russia has also been committed to settling trades using other countries’ currencies. Moreover, BRICS members (Brazil, Russia, India, China, and South Africa) are working towards creating a new BRICS-based reserve currency. In Shanghai, Lula voiced his curiosity about the world’s dependence on the greenback.
“I ask myself every night why all countries have to base their trade on the dollar,” Lula emphasized. “Why can’t we trade using our own currencies? Who decided that the dollar would be the dominant currency after the gold standard disappeared?” he inquired.
Financial Times reporters Joe Leahy and Hudson Lockett concluded their report on Lula’s statements by noting that any efforts to undermine the U.S. currency “in the near term will face a substantial challenge.” They highlighted that Brazilian miners regularly engage in dollar-denominated trades. However, officials from Brazil and the BRICS nations are not alone in discussing the potential decline of the dollar’s dominance.
The Philippines’ central bank governor, Felipe Medalla, recently mentioned in an interview that the greenback’s prominence will gradually diminish. “We want a multi-currency world, but so far, other currencies do not have the necessary international markets to support [it]. This is the advantage of the U.S. dollar – there’s a vast market for government securities,” Medalla stated. “I think over time, the dollar will be less and less dominant, but it’s happening very slowly,” he added.
Do you think a shift away from the U.S. dollar as the global reserve currency is inevitable, and what impact do you believe this would have on the global economy and financial systems? Share your thoughts about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.
On Wednesday, April 12, 2023, at 6:30 p.m. Eastern Time, Ethereum’s Shapella upgrade was successfully implemented, enabling validators to withdraw staked ether. Data reveals that more than 860,000 ether is poised for unlocking, and 77,000 ether is expected to be withdrawn on Thursday. Ether’s price has experienced a surge, rising 6% against the U.S. dollar within the past 24 hours.
Ethereum underwent a substantial update on April 12 when the Shapella hard fork launched, allowing validators to access their staked coins. This marks Ethereum’s first major development since The Merge—the transition from proof-of-work (PoW) to proof-of-stake (PoS). The hard fork officially took effect at epoch 194,048 or 6:30 p.m. (ET) on Wednesday.
Since the upgrade, numerous validators have prepared to withdraw their staked ether. However, ether withdrawal restrictions include a daily limit and a waiting list for validators. Withdrawals are available in two forms: those for reward withdrawals and those for the required 32-ether validator withdrawals.
As of 9:30 a.m. (ET) on Thursday, April 13, 2023, over 860,000 ether—valued at $1.71 billion using current exchange rates—are awaiting withdrawal. A staggering 17.46 million ether worth more than $34 billion is currently locked for staking purposes. The annual percentage rate (APR) for staking ether stands at 5.06%.
Despite the upgrade, Ethereum network transaction fees have remained relatively stable. The average transaction fee on Thursday is approximately 0.0029 ETH or $5.72 per transfer, while the median fee hovers around 0.0013 ETH or $2.66 per transfer. On Thursday, ethereum (ETH) climbed above $2k per unit, reflecting a 6% increase over the past 24 hours. Additionally, ETH dominance has risen to encompass 19.3% of the entire crypto-economy with a market cap surpassing $241 billion.
What do you think the successful implementation of the Shapella hard fork means for Ethereum’s future and the wider cryptocurrency market? Share your thoughts and predictions in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons, token.unlocks.app
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)'s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.
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