New BRICS+ Currency Is the Key to Global Financial Prosperity

June 24, 2024 Dinar Recaps 20

New BRICS+ Currency Is the Key to Global Financial Prosperity

On June 22, 2024 By Awake-In-3D

Discover how the UNIT Ecosystem’s innovative design will trigger a global currency reset, leveraging 2.5X the purchasing power of its intrinsic gold-backing.

In This Article

The Superior Purchasing Power of UNIT-Based Currencies
Explaining the UNIT’s 2.5X Purchasing Power Leverage of Gold
Mechanisms Behind the Global Currency Reset and Revaluation
The Long-Term Impact on Global Trade and Investments

Trust and confidence in traditional G-7 fiat currencies is waning as their purchasing power evaporates into unsustainable debt.

However, the new UNIT ecosystem offers a revolutionary financial system solution with its gold-backed UNIT tokens, providing superior purchasing power, store of value, and stability.

Unlike traditional fiat currencies, UNIT tokens leverage their intrinsic gold collateral, making them a more reliable and economically efficient option for international trade and transactions.

Countries that participate in the UNIT Ecosystem will see their native currencies revalue higher than traditional fiat currencies in terms of purchasing power (exchange rate valuation).

The Superior Purchasing Power of UNIT-Based Currencies

UNIT-based currencies derive their superior purchasing power and stability from their unique design and gold backing. Here are the key reasons why UNIT-based currencies have higher value than traditional G-7 fiat currencies:

Gold-Backed Stability: UNIT tokens are anchored to a basket containing 40% gold, providing intrinsic value. This backing ensures that UNIT-based currencies are more stable and less susceptible to inflation and geopolitical risks compared to fiat currencies.
Leverage Over Gold Collateral: By minting UNIT tokens with 60% local currencies and 40% gold, the ecosystem offers x2.5 leverage over the gold collateral. This leverage enhances the purchasing power of UNIT tokens, making them more valuable than pure fiat currencies.
Reduced Transaction Costs: The UNIT ecosystem reduces the full economic costs associated with cross-border payments in local currencies, which can approach 10%. These costs include commissions, exchange rate differences, and working capital expenses. Lower costs translate to higher effective value for those using UNIT tokens.
Economic Benefits for Trade: Importers benefit from reduced transactional costs, while exporters gain from the stability of financial flows. The stability and lower costs of using UNIT tokens in cross-border trade increase their purchasing power compared to traditional fiat currencies.

Explanation of the UNIT’s 2.5x Leverage Over Gold Collateral

The 2.5x leverage over gold collateral in the UNIT ecosystem allows for the creation of UNIT tokens that have greater economic value and purchasing power than the actual gold backing them.

Here’s what the UNIT Token is made up of:

Gold Collateral: Each UNIT token is backed by a basket that includes 40% gold. This means that for every UNIT token issued, there is a certain amount of gold held as collateral to guarantee the token’s value.

Leverage Mechanism: By accepting 60% of the value in local currencies from the Global South and 40% in gold, the ecosystem effectively multiplies the value of the gold collateral. For every unit of gold value, the system issues tokens worth 2.5 times that value.

This leverage allows the UNIT ecosystem to create more value from the gold it holds. For instance, if the gold collateral is worth $1 million, the system can issue UNIT tokens valued at $2.5 million.

The leveraged value means that UNIT tokens can facilitate larger transactions and carry greater purchasing power than the actual amount of gold held. This makes UNIT tokens more efficient for use in cross-border trade and other economic activities.

By leveraging the gold collateral, the UNIT ecosystem maximizes the economic utility of the gold, enabling more significant economic activity without requiring equivalent physical gold reserves for every transaction.

Mechanisms Behind the Global Currency Reset and Revaluation

The UNIT ecosystem’s innovative design facilitates a global currency reset and revaluation. Here’s how it works:

Gold Collateral: Minting UNIT tokens with local currencies and gold provides a stable, leverage-backed currency for international transactions.
Enhanced Value: The intrinsic value from gold backing and reduced transaction costs make UNIT tokens more valuable than traditional fiat currencies.
Plug-and-Play Solution: The ecosystem integrates seamlessly with existing financial infrastructure, minimizing complexity and reducing reliance on political or regulatory solutions.
Increased Circulation: As UNIT tokens circulate more widely, economies of scale will accrue, enhancing the ecosystem’s attractiveness and further increasing the purchasing power of UNIT-based currencies.

The Long-Term Impact on Global Trade and Investments

The UNIT ecosystem’s stable and apolitical nature, combined with its advanced technological solutions, will foster global economic growth and stability. Here are the expected long-term impacts:

Reduced Risk: UNIT’s stable value will lower the risk for all parties involved in trade and capital transactions.
Facilitate Development: The ecosystem will support the growth of an indigenous capital base in the Global South, reducing dependence on external sources.
Enhanced Balance-of-Payments: The introduction of UNIT for cross-border trade will positively impact the balance-of-payments for the Global South due to its stability and lower transaction costs.
Promote Integration: Diverse participants will integrate into the UNIT ecosystem, creating a level playing field and facilitating long-term investment and development.

The Bottom Line

The UNIT ecosystem offers a revolutionary solution to the trust crisis in global finance. By anchoring UNIT tokens to gold and providing a stable, adaptable currency, the ecosystem will spark a global currency reset and revaluation.

This change promises to enhance global trade, reduce economic risks, and promote sustainable development, particularly in non-G7 countries.

Supporting article: https://winepressnews.com/2024/05/20/brics-discusses-accepting-the-unit-a-new-decentralized-monetary-system-backed-by-gold-and-local-currencies/

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