Seeds of Wisdom RV and Economic Updates Wednesday Afternoon 8-27-25
Good Afternoon Dinar Recaps,
BRICS Plan: China’s New Currency Backed by Electricity, Not Oil
China is preparing to launch a bold new digital currency model that could redefine global trade: an electricity-backed renminbi. Unlike traditional fiat systems tied to gold reserves or oil exports, digital currencies allow nations to peg value to their most strategic resources. For China, that asset is electricity.
This move highlights the versatility of digital currencies in the 21st century — where countries are no longer constrained to gold or oil but can leverage the resource base where they hold the greatest advantage.
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From Gold & Oil to Electricity: A New Reserve Standard
Historically, major currencies have drawn legitimacy from the resources underpinning them:
Gold underpinned global money for centuries.
The U.S. dollar rose to power by linking itself to oil through the petrodollar system.
Now, as economies transition toward clean energy, China is pioneering the first electricity-backed digital trade currency. Payments for international electricity exports would be required in renminbi, boosting demand for the currency across energy markets much as oil once did for the dollar.
Why Electricity Works as a Digital Currency Backing
Digital currencies make it possible to tie money directly to flow-based assets — like electricity — which were historically difficult to use as reserves. Electricity is:
Universal: Every modern economy runs on power.
Measurable in real-time: Digital ledgers can account for generation and consumption with precision.
Scalable: China’s renewable build-out creates near-unlimited capacity for growth.
This shows how digital money can anchor itself to whatever resource a nation excels in, whether that be gold, oil, lithium, water, or electricity.
China’s Energy Projects Fuel the Strategy
China’s dominance in renewable power is anchored by record-breaking infrastructure projects:
The world’s first thorium reactor is now online.
The Yarlong Tampu Mega Dam in Tibet will generate 300 billion kilowatt hours annually, enough to power the entire United Kingdom.
These projects provide both the supply base and the financial leverage for an electricity-backed monetary system.
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BRICS De-Dollarization in Action
China is already applying this strategy across the Global South:
Laos signed a $1.45 billion clean energy deal settled directly in renminbi.
Ghana’s hydropower station supplies one-third of national electricity under RMB-based financing.
Each project bypasses the dollar, embedding renminbi-backed digital finance into local economies.
The Bigger Picture: Digital Currency Versatility
China’s experiment underscores the evolution of money:
Gold-backed digital assets (tokenized reserves)
Commodity-backed stablecoins (oil, natural gas, lithium)
Electricity-backed digital currencies (China’s latest model)
By leveraging blockchain, nations can monetize their strongest assets in ways the old system never allowed.
Sidebar: Ripple and the Asset-Backed Digital Currency Trend
While BRICS nations experiment with electricity and gold, the U.S. is pursuing its own digital asset strategy through Ripple and regulated stablecoins. Ripple’s work with central banks and institutions demonstrates how tokenized reserves can be tied to real-world assets — from fiat dollars to commodities.
This shows the versatility of digital currencies:
China/BRICS: Electricity, oil, gold, or minerals.
Ripple/U.S.: Dollar reserves and tokenized assets.
Both approaches highlight the same principle: in the digital age, currencies don’t need to be tied to just gold. Instead, nations can monetize their strongest assets to anchor value and build resilience into the global financial system.
Outlook
If successful, China’s electricity-backed digital renminbi could:
Reduce global reliance on the dollar in energy trade
Internationalize the RMB across renewable-powered economies
Demonstrate a new paradigm where digital currencies are flexible enough to be tied to any resource a nation chooses
In parallel, Ripple’s asset-backed token strategies show the West can leverage the same principle with regulated digital currencies. Together, these developments illustrate a new era of programmable, resource-backed money.
@ Newshounds News™
Source: Watcher.Guru
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