In what is certainly an interesting dilemma for the BRICS bloc and the asset class, Bitcoin has clearly evolved to become a key US dollar hedge amid the embrace of President-elect Donald Trump. Indeed, his alignment with cryptocurrencies has created a new kind of problem as he seeks to ensure the strength of the greenback on a global scale.

Earlier this year, Trump issued a stark warning to the BRICS bloc specifically. The returning president threatened to issue 100% tariffs on imports for nations seeking to ditch the US dollar. However, he has also sought to embrace the country’s Bitcoin exposure while wanting to create a strategic BTC reserve. In the end, the asset could be key in lessening the international strength of US currency.

bitcoin uae
Source: Watcher Guru

Also Read: BRICS & US May Be Set to Race for Bitcoin Supremacy in 2025

Trump Creating New Problem as Bitcoin Seeks to Dethrone US Dollar

Over the last year, the BRICS economic alliance has embraced de-dollarization in a massive way. The economic alliance has continually sought ways to promote local currencies in trade. Moreover, they have done so while seeking to lessen international reliance on the greenback.

Entering 2025, Bitcoin is poised to play a notable part in that. In November, Russia noted that no one can top the leading cryptocurrency. His message was clear: the asset class provides maneuverability within a Western-dominated financial system.

What is even more interesting is that Donald Trump—a president who has shown a clear focus on securing the dollar’s status—has encouraged the growth of this asset class. That ultimately informs the view that the US would only truly adopt Bitcoin if the greenback was truly struggling

Bitcoin and the US Dollar
Source: Watcher.Guru

Also Read: BRICS to Ditch US Dollar for Gold-Backed Cryptocurrency?

Interestingly, a new probe has been created by BRICS, as Bitcoin is evolving into a clear US dollar hedge amid Trump’s embrace of the token. In a recent statement, CryptoQuant CEO Ki Young Ju questioned if the US would ever adopt Bitcoin as a standard with the dollar losing ground to it. Indeed, it would only truly be possible if the greenback sank to unprecedented lows.

“I support the idea of a Bitcoin standard,” Ki said according to a CryptoSlate report. “But I question whether the US would resort to it unless the dollar’s dominance is truly at risk.” Additionally, Ki predicts Bitcoin will become a mainstream currency by 2030.

That year should bring increased acceptance of the asset class. Moreover, it will be vital to observe where the dollar goes over the next five years and how the US responds to a potential shift.