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

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

This week is the BRICS summit week, and an important global alliance is expected to be established. 35 countries have confirmed their attendance, and the BRICS will be renamed 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 take place gradually, the summit is expected to provide further insights into the potential development of a new global order.

In this article, I want to emphasize the importance of MBridge, a topic I have discussed before, 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 CBDC. The platform is built on the MBridge Ledger blockchain, ensuring compliance with the policies, legal requirements, regulations, and governance needs of specific jurisdictions.
• UAE Adoption of CBDC: The UAE recently launched its own CBDC with central bank approval, marking a significant shift towards blockchain-based infrastructure. This highlights the fact that countries are not only interested in the concept of “cryptocurrency”, but also in the use of blockchain technology. The term “currency” is often misleading, as the blockchain infrastructure and the ease of use of it are the real goals.
• Ongoing MBridge Tests: 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 capabilities of the system, 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 could be the creation of 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 BRICS countries position themselves 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 that moves away from the dollar may face a 100% tariff on goods entering the U.S., indicating that people are becoming more aware of changes in the global financial system.

That being said, this is just a game of waiting. The BRICS countries are about to emerge, 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 dollar.

The next few years will be crucial for the world, but for those of us in cryptocurrency, we are already very accustomed to change.