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. 35 countries have confirmed their attendance, and BRICS will be renamed BRICS+ to reflect the increasing number of its members.

! bhX5W5k78Kh4cJ4fEyKulTvYwQ0EfxMWaz4EzXPt.png Egypt , Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE) will join BRICS+. While this expansion will be gradual, the summit is expected to provide more insight 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 CBDCs. The platform is built on the MBridge Ledger blockchain, ensuring compliance with the policy, 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 blockchain infrastructure and its usage.
• Ongoing MBridge testing: Several transactions have been completed on MBridge as part of ongoing network testing, including a transfer of AED 50 million from the UAE to China. These tests are designed to explore the capabilities of the system, but it is important to note that they are still in the experimental phase. These are the steps to understand how the network works at 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 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 evident. Former U.S. President Donald Trump recently stated that any country that moves away from the dollar could face a situation where a 100% tariff is imposed on goods entering the United States, indicating that people are becoming more aware of changes in the global financial system.

That being said, it's just a game of waiting. The BRICS are coming, and the landscape is changing. The BRICS countries are positioning themselves, possibly building a new global order, while the West may not yet fully realize how much is 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 are crucial for the world, but for those of us in cryptocurrency, we are already very accustomed to change.