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BRICS R5 vs. Unit: The Race Toward a 2026 Currency Launch
Two competing currency concepts highlight the bloc’s ambition to reshape global finance.
R5 Gains Momentum
The R5 proposal draws its name from the five original member currencies — Real, Ruble, Rupee, Renminbi, and Rand. Designed as a basket currency weighted by economic size, China would account for roughly 40% and India about 25%. Analysts see this gradual approach as a realistic entry point, starting as a unit of account before developing into a broader monetary system.
Russian Foreign Minister Sergey Lavrov emphasized: “No one in the BRICS community is raising the issue of replacing the dollar.”
Gold-Backed Unit Alternative
The competing “Unit” proposal envisions a hybrid structure: 40% backed by gold, 60% tied to the BRICS currency basket. The concept was showcased with prototype banknotes at the 2024 Kazan summit, signaling serious intent. A gold-backed foundation would provide tangible value, distinguishing the Unit from traditional fiat systems.
Timeline for 2026 Launch
At the 2025 Brazil summit, leaders reported that nearly 90% of intra-BRICS trade was already settled in local currencies. With BRICS Pay expanding and blockchain systems linking central bank digital currencies, officials believe a pilot launch is achievable by 2026. Lavrov confirmed: “The project will be continued by our Brazilian successors and a pilot could appear before the end of 2026.”
Infrastructure and Challenges
BRICS Pay now connects nearly 5,000 financial institutions, providing an alternative to SWIFT and strengthening non-dollar trade. Kremlin aide Yury Ushakov stated: “We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain.”
Still, challenges remain. The bloc’s diverse economies complicate any unified policy. India’s External Affairs Minister S. Jaishankar noted: “I don’t think there’s any policy on our part to replace the dollar. The dollar as the reserve currency is the source of global economic stability.” Meanwhile, Iran and Russia push for a shared currency to reduce the impact of U.S. sanctions.
Why This Matters
The BRICS currency project — whether under the R5 or Unit name — reflects the bloc’s determination to rewire the global monetary system. Even without consensus on a final design, the push toward a 2026 launch highlights a fundamental shift: the rise of non-dollar settlements and new payment systems that could redefine international trade flows.
@ Newshounds News™
Source: Watcher Guru
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