Putin Declares Western Financial System Obsolete as BRICS Expands

Russian President Vladimir Putin has declared the Western-dominated financial order "becoming obsolete" during the BRICS annual summit, signaling a seismic shift in global economic power dynamics. The bloc's de-dollarization strategy and alternative financial framework are gaining momentum, with India and China actively circumventing Western sanctions through bilateral trade mechanisms.

The BRICS coalition is systematically eroding the dollar's hegemony, as evidenced by Russia's sanctions countermeasures and India's covert semiconductor shipments. This realignment coincides with escalating trade tensions, including Trump's tariff threats, which risk accelerating the fragmentation of global markets.

Emerging financial infrastructures developed by BRICS nations could catalyze adoption of decentralized assets as hedges against currency volatility. While no specific cryptocurrencies are mentioned in the announcement, the geopolitical friction underscores bitcoin's narrative as a neutral reserve asset beyond state-controlled monetary systems.