New BRICS Gold Token: Not a Cryptocurrency, Stablecoin, or CBDC
New BRICS Gold Token: Not a Cryptocurrency, Stablecoin, or CBDC
On June 23, 2024 By Awake-In-3D
Learn why the BRICS UNIT token currency is unlike anything you’ve heard about before.
In This Article
What is the BRICS UNIT Token?
Is the BRICS UNIT a Cryptocurrency?
Is the BRICS UNIT a Stablecoin?
Is the BRICS UNIT a CBDC?
What are Blockchain Nodes in the new BRICS UNIT Financial System?
What is the BRICS UNIT’s Role?
I get it. The revolutionary and groundbreaking makeup of the new BRICS+ gold-backed currency token (the UNIT) and its financial ecosystem is confusing.
This article explains what the UNIT token is, and how it differs from cryptocurrencies, stablecoins, and Central Bank Digital Currencies (CBDCs).
What is the BRICS UNIT Token?
The UNIT token is a unique digital asset that is the definition of “real money”.
Combining both a stable store of value without the depreciation of fiat currencies like the US Dollar but also be fungible medium of exchange like a currency.
Unlike traditional cryptocurrencies or stablecoins, the value of the UNIT token is based on a basket of underlying assets, based on a 40% gold component and 60% local currencies component.
This combination gives the UNIT token a stable intrinsic value while being flexible and fungible for everyday transactions.
Is the BRICS UNIT a Cryptocurrency?
Cryptocurrencies, like Bitcoin, derive their value from supply and demand without being backed by physical assets.
The UNIT token, however, derives its value from a mix of gold and local currencies. This basket of assets ensures that the value of the UNIT token is more stable than that of typical cryptocurrencies, making it highly reliable for everyday use.
Is the BRICS UNIT a Stablecoin?
Stablecoins are designed to maintain a fixed value by being pegged to a fiat currency, like the US dollar.
The UNIT token, while also backed by assets, does not have a fixed value. Its value fluctuates based on the total value of its underlying assets and market demand.
This means the UNIT token is not a stablecoin, as it lacks the reverse conversion mechanism that stabilizes a stablecoins’ value.
Is the BRICS UNIT a CBDC?
Central Bank Digital Currencies (CBDCs) are digital versions of a country’s fiat currency, issued and regulated by the central bank.
The UNIT token, however, operates on a Decentralized Autonomous Organization (DAO) structure, which means it is governed by a community of users (node operators) rather than a central authority.
This decentralized nature differentiates the UNIT token from CBDCs, ensuring it remains an apolitical and globally accessible digital currency.
What are Blockchain Nodes in the new BRICS UNIT Financial System?
In the UNIT ecosystem, individual countries that join the currency and financial network operate their own independent blockchain nodes.
These nodes ensure the decentralized and distributed nature of the UNIT token, enhancing security and reliability. Each participating country maintains control over its node, contributing to the overall resilience and integrity of the UNIT network.
This structure allows for a collaborative yet autonomous participation in the global UNIT financial ecosystem.
What is the BRICS UNIT’s Role?
The UNIT token will function as money, offering a stable medium of exchange, a unit of account, and a store of value. These are the four primary pillars of an ideal economic and financial system offering equality, fairness and prosperity for all participants.
Unlike stablecoins, which are often used as a bridge in transactions, the UNIT token is a final stage currency. It will complement local currencies rather than replace them, providing a more stable and reliable alternative for trade and investment.
The Bottom Line
The UNIT token is a decentralized, asset-backed digital currency offering the benefits of both traditional money and digital assets.
Its unique structure and intrinsic value make it a promising tool for modern financial transactions, standing apart from cryptocurrencies, stablecoins, and CBDCs.
Its operation within a DAO framework and the use of independent blockchain nodes by participating countries ensure it remains decentralized and robust, making it a viable and innovative financial instrument.
Supporting article: https://brics-plus-analytics.org/how-does-the-brics-currency-transform-the-world-economy/
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