Posted on 09/28/2024 8:21:50 AM PDT by delta7
With less than a month before the crucial BRICS annual summit in Kazan under the Russian presidency, serious informed discussions are raging in Moscow and other Eurasian capitals on what should be at the table in the de-dollarization and alternative payment system front.
Earlier this month Andrey Mikhailishin, head of the task force on financial services of the BRICS Business Council, detailed the list of top projects under consideration. They include:
A common unit of account - as in The Unit, whose contours were first revealed exclusively by Sputnik. A platform for multilateral settlements and payments in BRICS digital currencies, connecting the financial markets of BRICS members: that’s BRICS Bridge, which bears similarities with the Bank of International Settlements-linked MBridge, already in effect. That will complement intrabank systems already in action, as in Russia’s SPFS and Iran’s CPAM settling financial transactions – and 60% of their trade - in their own currencies.
A blockchain-based payment system that entirely bypasses the US dollar: BRICS Pay. Arguably 159 participants may be ready to adopt this sanction-evading, similar-to-SWIFT mechanism right away.
A settlement depository (Clear). An insurance system. And crucially a BRICS rating agency, independent from the Western giants. What’s at stake is the extremely complex design of a brand-new financial system – decentralized and using digital technology. BRICS Clear, for instance, will be using blockchain to record securities and exchange them. As for The Unit, the value of the common unit of account is pegged by 40% to gold and by 60% to a basket of BRICS member’s national currencies.
The BRICS Business Council considers The Unit a “convenient and universal” instrument, since a unit can be converted into any national currency.
That would definitely solve the nagging problem of exchange rate volatility when cash balances accumulate from settlements in national currencies; for example, a mountain of Indian rupees used to pay for Russian energy.…much more.
Not saying it’s going to happen, but it is a possibility. In any case, the upcoming Brics Summit is in a few weeks- and the MSM is silent. 159 countries will be attending.
Most do not even know what SWIFT or Brics is, they may soon find out.
Give me a brake. Between them, the BRICS don’t have a single currency that anyone wants. The best they can hope for is a central gold storage vault where they can clear accounts without shipping the gold by plane.
Even then, who do they trust to keep the gold?
You are very ill informed. Not worth explaining, let’s just wait and see what happens when the Brics M Bridge Unit is fully up and running.
In the mean time, I suggest you familiarize yourself with MBridge, BIS, and the entire world’s Central Banks buying historic amounts of Gold….something is developing, in short- historic.
BRICS = a do-nothing talkshop
(but they sure manage to fool some gullible people here on FR)
Sure would be nice if didn’t have America having people at the helm.
America Hating
I can’t wait until all the BRICS folks sell their homes, and convert all their dollar assets to rubles, rands, reals, and rials.
I don’t know how things will shake out, eventually. But, history belies the dollar remaining king for much longer.
The world’s reserve currencies have all had their run, through the ages, and the dollar is getting rather long in the tooth.
I have been to a few BRICS nations, and in every one of those counties, when I walked into a store or restaurant, I was told that they accepted, and prefer U.S. dollars over their domestic currency.
There has not been one single time in all my years in the United States, that I walked into a business, and was asked, “Instead of U.S. Dollars, can you please pay us with Russian Rubles?”
Their actions show they are assuming the collapse will happen, and they want as soft a landing as possible.
I would change your statement only to reflect that the world’s currencies that had their day were all deliberately destroyed by deliberately destructive policies and actions to benefit a few at the expense of everyone else. It doesn’t have to go that way but it is the price to be paid when a Country is lulled into complacency and embraces suicide.
BRICS = a do-nothing talkshop
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You can get back with us after the Summit, then reevaluate your “opinion” after the Unit is instated….hint: the BIS ( best you learn who they are) has accepted the Unit into their M Bridge system…..get back with me when you learn what that is….another hint: you will not find much about M Bridge or the Brics Unit on Western MSM.
You can thank me later.
The “reserve currency” designation is a function of international trade, sovereign investing and swaps between nations and the actions of major private investors. The recent diminishing of the petrodollar weakened one of the international supports for the US dollar.
I’m sure, again through the ages, the local populations continued to use their local currency regardless of the fluctuations of currencies on the world stage.
I live in the USA and will continue to use dollars unless it’s decreed to be replaced by some digital instrument.
Yes, I quite agree.
The world’s reserve currencies have all had their run, through the ages, and the dollar is getting rather long in the tooth.
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Of course, there has been 4,000 “ currencies” throughout history, all have returned to their intrinsic value- zero….the USD is exhibiting the same events
( on steroids) that led to their demise.
That’s a lot of currencies!
I was thinking of the more modern era of the last 6-700 years or so, beginning, I think, with Portugal.
Sounds like you are a Peter Zeihan fan!
Regardless, my fellow-Canuck, you are woefully behind the times if you think BRICS+ is a do-nothing talkshop. While they most certainly were in the past, the Biden Administration’s weaponization of the US Dollar and punitive sanctions against dozens of countries for not toeing the pro-LGTBQ+ line and US foreign policy means the BRICS+ nations have no choice but to work together to avoid hanging separately. That creates highly-motivated people willing to sacrifice to survive.
The smart thing is to diversify: have some assets within SWIFT and others outside of it. Haven’t you learned the lesson of our Glorious Leader freezing the bank accounts of the truckers and their supporters?
Yes, let’s transact in Rubles and Yuan! They are so much better than the dollar.
People who believe this is likely are delusional.
The Portuguese surely said something similar 600 years ago.
And later, “The pound sterling will reign forever!”
The ruble is worthless. The Yuan changes value every other day when Xi wants to. India is a mess. Brazil is a growing economy, but nowhere near ready to take on the world.
If they want to get rid of swift, they should just convert their international settlements to Bitcoin. LOL
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