UAE, Argentina and Ethiopia begin state-backed Bitcoin mining

According to Matthew Sigel, Head of Digital Assets Research at investment firm VanEck, three of the newest members of the BRICS (Argentina, UAE and Ethiopia) have started mining Bitcoin using government resources.

The move underscores an emerging trend among BRICS countries to explore digital assets for economic resilience and financial independence. According to Sigel in an interview with CNBC, the BRICS coalition, which now includes six more countries, has a GDP larger than the total G7 GDP. Recent developments point to a move away from traditional Western financial systems.

Three of the six new members of BRICS (🇦🇪 UAE, 🇦🇷 Argentina and 🇪🇹 Ethiopia) are mining Bitcoin with government resources.

Russia’s Sovereign Wealth Fund is investing in Bitcoin mining across BRICS countries in a bid to balance global trade in Bitcoin. pic.twitter.com/J0OnunXfLu

— BitEagle🔶 (@BitEagleNews) 28 October 2024

Sigel noted that the Russian Sovereign Wealth Fund is also investing in Bitcoin (BTC) mining and artificial intelligence infrastructure across the BRICS bloc. The aim is to establish a regional system to settle international trade using Bitcoin, potentially reducing dependence on the US dollar.

In the same interview, Sigel stated that the current market structure is very bullish for Bitcoin, making comparisons with the 2020 US elections. He noted that Bitcoin’s recent rise is consistent with increasing odds for Trump to win and the pattern of high volatility emerging following the election results.

For many, Bitcoin represents a decentralized financial instrument that could provide BRICS countries with an alternative to dollar-dependent systems.

Bitcoin mining, the process of creating new Bitcoins and verifying transactions on the blockchain, requires a significant amount of energy and infrastructure. However, it could enable BRICS countries to trade independently of the dollar’s influence.