Dollar Debasement Fears Surge — Meet BRICS’ Gold-Backed ‘Unit’
The system is designed as a trade settlement tool for BRICS and allied countries, not an immediate mainstream consumer currency.
Impact on US$ won’t be so good… if it takes off. Gold on the other hand…
Smart.
With 60% of the value of the unit coming from a basket of their currencies, they keep significant control on the value of the unit and it lets their currencies benefit from the need for the unit.
Using blockchain for settlement allows them to not need a “Central bank” for the unit and significantly preserve their independance.
Do you have confidence in their currencies though and in the gold actually being there it back it up?
Personally? With a 40%/60% ratio, I don’t put any value in the gold backing of their unit. The USD was theoretically gold backed until they couldn’t pretend anymore and had to debase it.
It’s been proven to me time and again, however, that my personal opinion on such topics doesn’t matter and that the powers that be put trust into things and discourses that I wouldn’t touch with a 10 foot pole. Cases in point AI, Tesla, US Treasuries and the P/E ratio of US stocks among others.
Edit: I do find significant that, while they do put buzzwords like AI into the mix, they rely on gold and not a basket of cryptos for the backing but use blockchain as a technology for processing settlements.
Edit 2: on the other hand, it makes me reconsider the strength of BRICS countries in the future world order and makes me second guess my exclusion of them in my investments so, kudos to them!
So .. if they use a blockchain, is it proof of stake or proof of work, and if it is proof of work how hard would it be to do a double spending attack? (It seems to be a permissioned blockchain, so I assume the attacker would have to be one of the BRICS countries?)
also:
Is the Unit an official BRICS currency?
No. It is a research pilot backed by the IRIAS organization and supported by some BRICS members.
sounds like there are some BRICS countries that don’t participate? Lucky that BRICS ain’t a trademark I guess.
Prepare to see brics flying. Or missles.
What happened last time someone wanted to pay Oil with something that wasn’t USD ?
China, Russia and India have nukes.
Brazil or other participants to the BRICS+ maybe.
BRICS as an economic force should survive and manage to do what they intend to.