Vaneck: UAE, Argentina and Ethiopia begin state-backed Bitcoin mining

Three of the newest members of BRICS—Argentina, the UAE, and Ethiopia—have begun mining Bitcoin using government resources, according to Matthew Sigel, Head of Digital Assets Research at investment firm VanEck.

This move highlights an emerging trend among BRICS nations toward exploring digital assets for economic resilience and financial independence. The BRICS coalition, which now includes six additional nations, has a combined GDP larger than that of the G7, according to Sigel in an interview with CNBC. Recent developments suggest a shift 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 throughout BRICS countries with the goal of settling global trade in Bitcoin. pic.twitter.com/J0OnunXfLu

— BitEagle🔶 (@BitEagleNews) October 28, 2024

Sigel noted that Russia’s Sovereign Wealth Fund also invests in Bitcoin (BTC) mining and artificial intelligence infrastructure across the BRICS bloc. The goal is to establish a regional system for settling international trade using Bitcoin, potentially reducing reliance on the U.S. dollar.

In the same interview, Sigel described the current market setup as very bullish for Bitcoin, drawing comparisons to the 2020 U.S. election. He noted that Bitcoin’s recent rally aligns with increased betting odds for a Trump win and a pattern of high volatility following election results.

full interview –>https://t.co/I0Elb4ae7A

— matthew sigel, recovering CFA (@matthew_sigel) October 28, 2024

For many, Bitcoin represents a decentralized financial tool 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 substantial energy and infrastructure. However, it could enable BRICS nations to conduct trade independently of the dollar’s influence.

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