Brazil and Argentina are looking for new currencies to get rid of dollar dependency in bilateral trade.
Amid the changing dynamics of global geopolitics and the rising debt of the United States, countries around the world are looking for an alternative currency other than the USD to conduct trade. Experts say that Bitcoin is the right solution in the long run.
Brazil and Argentina announced that they are working on a common currency. During the Buenos Aires Summit this week, South America’s two largest economies will discuss further plans.
According to the details, the focus will be on using the new currency to increase trade and trust between the two countries and reduce reliance on the dollar. Speaking to the Financial Times, Argentine Economy Minister Sergio Massa said:
“A decision will be made to start examining the parameters necessary for a common currency, including everything from financial issues to the size of the economy and the role of central banks. Mechanisms for trade integration will be studied. I do not want to create false expectations. This is the first step of a long road that Latin America has to go. “
In the face of rising global debt and falling economic output, Bitcoin is once again gaining traction as users worldwide try to get rid of the fiat currency. Coinbase CEO Brian Armstrong suggested that switching to Bitcoin might be the right option.