The termination of the US-Saudi petrodollar deal is expected to be advantageous for Bitcoin (BTC). Furthermore, Saudi Arabia’s decision not to renew its long-standing security arrangement with the United States, which expired on June 9, 2024, has left the financial world poised for a seismic shift.
Thanks to this crucial development, Saudi Arabia can now sell commodities and oil in a variety of currencies. These are not just US dollars; they also contain the Chinese RMB, Euros, Yen, and Yuan. Furthermore, utilizing virtual currencies such as Bitcoin may also be investigated.
Deal on US-Saudi Petrodollars Closes
The most recent event represents a substantial break from the petrodollar system, established when the United States of America separated its money from gold in 1972. Furthermore, the move is anticipated to quicken the world’s shift away from the US dollar, with Bitcoin poised to benefit significantly.
Saudi Arabia has declared its involvement in the cross-border Project mBridge central bank digital currency (CBDC) trial, which China dominates. This action demonstrates Saudi Arabia’s determination to diversify its sources of economic dependence. The Bank for International Settlements (BIS) announced Saudi Arabia’s complete involvement in Project mBridge.
Central banks from the UAE, Thailand, Hong Kong, and China are involved in the project. “The most advanced cross-border CBDC project just added a major G20 economy and the largest oil exporter in the world,” Atlantic Council’s Josh Lipsky said, as reported by Reuters.
Currently in its “minimum viable product” stage, the bridge platform seeks to use CBDCs to streamline cross-border transactions. The Ethereum Virtual Machine, the hub of the Ether cryptocurrency network, is compatible with the platform as well, creating new channels for the exchange of digital currency.
What Are The Benefits Of This Development For Bitcoin?
Renowned cryptocurrency expert Doctor Profit stated, “The US-Saudi petrodollar agreement ends and won’t be extended,” in a post on X. As a result, the US will have to print a ton of new dollars. Inflation is predicted to rise due to the planned increase in USD printing.
Fiat currencies, like the US dollar, tend to lose value when inflation rises. Additionally, it would force investors to look for safety in other assets. With its limited quantity and decentralized structure, Bitcoin can gain much from this change.
The analyst also projects that Bitcoin will follow a bullish trend. “From this day on, the dollar will face significant pressure, USD will be printed, and inflation will begin to rise,” he said. Optimistic about stocks, gold, bitcoin, and real estate. Although this shift will likely cause severe short-term economic unrest, Bitcoin has bright long-term potential.
According to a worried user, when inflation increases, the ordinary person won’t invest in assets like gold, Bitcoin, or other assets. “Do you think the market needs average people to move?” asked Doctor Profit. It’s a longer-term increase. The effects of this modification will become apparent in eight to twelve months.
Bitcoin’s function as an inflation hedge becomes more apparent when conventional financial systems experience volatility. Furthermore, Bitcoin is a desirable value store because of its decentralized and deflationary characteristics. Additionally, Bitcoin protects from fiat currency depreciation.
“The US will soon realize it can’t defeat inflation,” said Doctor Profit. Similar to how they previously manipulated the inflation basket, they will manipulate the masses. They will fabricate evidence that inflation has been overcome to support the creation of more money. They have one very obvious objective: turn on the printers!
