US Senator Maro Rubio is concerned about the growth of BRICS and its threat to the US and its currency. The Florida Senator says in an article for RealClearWorld that the continued expansion of this group might interfere with the ability to exert sanctions on other nations.

“If current trends continue, it will become harder and harder for the United States to prevent international violence and oppression through sanctions,” Rubio writes. At the beginning of 2024, BRICS officially added multiple new nations to the newly expanded BRICS+, including Egypt and the UAE.

Since its founding, BRICS has worked to end global reliance on the US Dollar. In the past year, the mission has strengthened, with the development of BRICS pay and the expansion of the bloc. In 2024, the alliance is expected to grow again.

Also Read: BRICS: Why Local Currency Bonds is a Blow to the US Dollar

Furthermore, Marco Rubio stresses that the US Government must seal alliances with countries like Argentina and other nations who are interested in BRICS. “Milei is taking the right steps to be a friend to the United States. The Biden Administration would do well to reciprocate that because friends are few and far between these days.”

As sanctions continue between the US and Russia, countries are becoming more inclined to end reliance on the US Dollar. America’s battle with inflation in 2023 and interest rate hikes makes it especially more difficult. Therefore, Marco Rubio finds it important to rebuild and seal these relationships before BRICS swoops in.

Chinese investors remain resolute in their pursuit of Bitcoin, despite the government’s ban since 2021. Bitcoin continues to attract substantial investment from Chinese capital, as Reuters reports today.

Mainland China Is Still Buying Bitcoin

Dylan Run, a finance executive in Shanghai, epitomizes this trend. Concerned about China’s economic outlook and the sluggish domestic stock market, Run ventured into Bitcoin in early 2023.

As detailed in the Reuters report, he employed an astute strategy, utilizing bank cards issued by rural banks and keeping each transaction below 50,000 yuan ($6,978) to evade regulatory scrutiny. In his view, “Bitcoin is a safe haven, like gold.” Run has now allocated nearly half of his investment portfolio to BTC, which has surged heavily, outperforming China’s ailing stock market.

Remarkably, Run’s journey reflects a broader movement among Chinese investors who are actively seeking unconventional pathways to access Bitcoin. The Reuters report highlights that Chinese Bitcoin investors operate within a regulatory gray area, as cryptocurrency trading is officially banned in mainland China, and strict controls govern capital flows across borders.

Despite these constraints, Chinese investors persist in trading Bitcoin on offshore exchanges such as OKX and Binance, or via over-the-counter channels. Additionally, as noted in the Reuters report, Chinese citizens have ingeniously leveraged their $50,000 annual foreign exchange purchase quotas, typically reserved for overseas travel or education, to fund BTC accounts in Hong Kong.

This phenomenon is driven by a growing appetite for diversification amid China’s economic uncertainties. One investor succinctly expressed the sentiment, stating, “Given the economic climate in China, exploring alternative investments like cryptocurrencies has become a necessity.”

Bitcoin, along with other digital assets, has emerged as a sanctuary for these investors as they navigate China’s complex economic landscape. Importantly, this trend extends beyond retail investors. Chinese financial institutions are also exploring opportunities within the cryptocurrency sector, as highlighted in the Reuters report.

An executive from a Hong Kong-based cryptocurrency exchange underscored the rationale, stating, “Faced with a sluggish stock market, weak demand for IPOs, and contraction in other businesses, Chinese brokerages need a compelling growth narrative for their shareholders and boards.”

Off-Shore Crypto Exchanges Facilitate Trading

As the report observes, access to Bitcoin remains relatively accessible within mainland China. Off-shore crypto exchanges like OKX and Binance continue to offer their services to Chinese investors, providing guidance on converting yuan into stablecoins through fintech platforms like Ant Group’s Alipay and Tencent’s WeChat Pay.

Chainalysis, a cryptocurrency data platform, shed light on the extent of this resilient activity. Contrary to the regulatory ban, the report reveals that crypto-related activities in China have surged.

China’s global ranking in terms of peer-to-peer trade volume skyrocketed from 144th in 2022 to 13th in 2023. Astonishingly, the Chinese crypto market recorded an estimated $86.4 billion in transaction volume between July 2022 and June 2023, far surpassing Hong Kong’s $64 billion in crypto trading. Notably, the proportion of large retail transactions, ranging from $10,000 to $1 million, nearly doubled the global average of 3.6%.

According to Chainalysis, the developments “have created speculation that the Chinese government may be warming to cryptocurrency and that Hong Kong may be a testing ground for these efforts.”

At press time, BTC traded at $40,268.