Bitcoin (BTC) stands to benefit from the collapse of the US-Saudi Petrodollar Agreement. Additionally, the financial world is set for a seismic shift following Saudi Arabia’s decision not to renew its long-standing security agreement with the US, which was set to expire on June 9, 2024.

This important move allows Saudi Arabia to sell oil and other commodities in different currencies. These include the Chinese RMB, Euro, Yen, and Yuan, not exclusively the US dollar. In addition, the use of digital currencies such as Bitcoin can also be explored.

US-Saudi Petro-Dollar deal ends

The latest developments mark a significant departure from the petrodollar system established in 1972 when the US delinked its currency from gold. In addition, the decision is expected to accelerate the global trend away from the US dollar, a shift that will benefit Bitcoin significantly.

Saudi Arabia has announced its participation in the China-influenced central bank digital currency (CBDC) cross-border trial project Mbridge. The move underscores its commitment to diversifying its economic base. The Bank for International Settlements (BIS) announced Saudi Arabia’s full participation in Project mBridge.

The project involves the central banks of China, Hong Kong, Thailand and the United Arab Emirates. “The most advanced cross-border CBDC project has just involved a major G20 economy and the world’s largest oil exporter,” noted Josh Lipsky of the Atlantic Council, according to Reuters.

The mBridge platform, now at its “minimum viable product” stage, aims to facilitate cross-border transactions using CBDCs. Additionally, the platform is compatible with the Ethereum Virtual Machine, the backbone of the Ether cryptocurrency network. It opens up new avenues for digital currency transactions.

How will Bitcoin benefit from this development?

In a post on X, Dr. Profit, a well-known crypto analyst, wrote, “The US-Saudi Petro-Dollar agreement has expired and will not be extended. This will force the US to print tons of new US dollars.” !The expected increase in USD printing is expected to increase inflation.

As inflation increases, fiat currencies such as the US dollar depreciate in value. Furthermore, it will encourage investors to seek refuge in alternative assets. Bitcoin, with its fixed supply and decentralized nature, is positioned as a key beneficiary of this shift.

Additionally, the analyst predicts a bullish trend for Bitcoin. He said that from this day the dollar will come under severe pressure, the US dollar will hide, inflation will start increasing. Bullish for gold, bitcoin, stocks and real estate. The short-term economic disruption expected from this transition may be difficult, but the long-term prospects for Bitcoin are promising.

A concerned user pointed out that average people will not invest in bitcoin, gold or other assets when inflation is high. Dr. Profit replied, “Do you think the market needs averages to move? This is more of a long-term increase. The effects of this shift will be seen 8-12 months from now.

Bitcoin’s role as a hedge against inflation becomes more apparent as traditional financial systems face instability. Additionally, Bitcoin’s decentralization and volatility characteristics make it an attractive store of value. Bitcoin also offers a hedge against the depreciation of fiat currencies.

Dr. Proft further remarked, “America will soon realize that it cannot beat inflation. They will manipulate the public as they recently manipulated the inflation basket.” They will make it look like inflation has been defeated to justify printing new money. Their goal is clear: turn on the printers!!”

Find out more from Kashmir Monitor.

Subscribe to get latest posts delivered to your email.

Source link