Can This Dethrone the US Dollar? What You Need to Know About the New Financial Currency System

Can This Dethrone the US Dollar? What You Need to Know About the New Financial Currency System

On July 15, 2024  By Awake-In-3D

Learn why this new Alternative Financial System is creating a game-changing currency framework focused on gold and oil.

The US Dollar, and the global fiat currency system it maintains, wield immense financial power and control over the world. Few dare to challenge this formidable financial fortress.

That said, the BRICS Alliance is actively building a new, Alternative Financial System right before our eyes.

This innovative system, with its unique focus and sound design, aims to compete with and challenge the 100-year global dominance of the US Dollar and the entire fiat currency system.

The BRICS Alliance is harnessing their collective economic power, emphasizing physical resource-backed currency stability, and reducing dependency on debt. They are aggressively accumulating gold and increasingly settling trades in their local currencies.

This shift redefines the global financial landscape and disrupts the longstanding USD hegemony and the global fiat currency system as a whole.

In This Article

1. Formidable Strength of the US Dollar-Based System: Analyzes the entrenched power and influence of the USD.

2. Emergence of the Alternative Global Financial System: Examines the rise of the BRICS alliance and its new financial framework.

3. Structural Strength and Stability of BRICS: Details the foundational pillars of the BRICS financial system.

4. Energy as the Financial Backbone: Explores the role of energy resources in the new financial order.

The Formidable Strength of the Current US Dollar-Based Financial System

The US dollar (USD) has long stood as a pillar of global financial power. It is the world’s primary reserve currency, with 80% of global foreign exchange transactions involving the USD.

The dollar’s dominance is supported by several key factors:

• Reserve Currency Status: The USD’s role as the primary reserve currency means that central banks around the world hold vast reserves of dollars, underpinning global trade and finance.

• Global Financial Systems: The USD dominates global financial systems like SWIFT, Eurodollar markets, and derivative and petrodollar markets. These systems facilitate international trade and investment, reinforcing the dollar’s central role.

• Federal Reserve’s Influence: The Federal Reserve, with its exclusive power to print USD, maintains control over global liquidity. This unique position allows the US to manage economic crises and influence global financial markets effectively.

• Debt and Print Cycle: The USD’s strength is bolstered by its ability to be printed and lent into existence. This “debt and print” cycle creates a dependency on the dollar for liquidity, entrenching its dominance.

Despite its imperfections, the USD remains today as an insurmountable fortress of financial power and control. Its influence permeates every corner of the global economy, making it difficult to challenge.

Emergence of the Alternative Global Financial System

In a world dominated by the USD, the BRICS alliance is developing an alternative global financial system.

This system, designed to circumvent the limitations and risks of the fiat currency framework, leverages local currencies and gold for trade settlements. The BRICS nations aim to reduce the volatility and dependency associated with fiat currencies, creating a robust financial framework.

• Local Currencies and Gold: The BRICS financial system emphasizes trade settlements in local currencies and gold. This reduces the risk of currency fluctuations and dependence on the USD.

• Resource-Backed Stability: The BRICS countries are rich in natural resources, particularly energy. By linking their financial system to tangible assets like gold and oil, they provide a more stable and reliable economic foundation.

• Reduced Debt Dependency: The alternative system minimizes reliance on debt for liquidity, contrasting with the USD’s “debt and print” cycle. This approach fosters financial discipline and sustainability.

Structural Strength and Stability of BRICS

The strength of the BRICS financial system lies in its emphasis on resource-backed stability and reduced debt dependency. By settling trades in local currencies and gold, the BRICS nations mitigate the risks posed by currency fluctuations and external economic pressures.

This approach fosters financial discipline and long-term sustainability, positioning the BRICS system as a viable competitor to the USD.

Energy as the Financial Backbone

Energy resources, especially oil, play a crucial role in the BRICS financial strategy.

With rising global energy demand, particularly from populous nations like China and India, the preference for settling oil transactions in gold or local currencies is growing. This trend not only undermines the dollar’s dominance in global trade but also enhances the stability and resilience of the BRICS financial system.

Challenges to USD Dominance

Despite the dollar’s entrenched position, several factors indicate that the BRICS alternative global financial system could pose a significant challenge:

• Global Distrust in the USD: Actions like the weaponization of the USD against countries like Russia have eroded trust in the dollar as a neutral reserve asset. This distrust fuels the search for alternatives.

• Shifts in Trade Practices: An increasing number of countries are conducting trade outside the USD framework. For instance, in 2023, 20% of global oil sales were settled in currencies other than the USD, reflecting a significant shift in trade practices.

• Accumulation of Gold: Since the 2008 Global Financial Crisis, many central banks, particularly in BRICS nations, have been accumulating gold, moving away from USD-denominated assets. This trend is bolstered by the Bank of International Settlements’ recent recognition of gold as a tier-one asset.

The Long-Term Vision

The BRICS alliance’s vision extends beyond mere competition with the USD. It aims to create a more balanced and equitable global financial system, reducing the disproportionate influence of any single currency.

By leveraging their collective economic power and resource wealth, the BRICS nations are laying the groundwork for a resilient and self-sufficient financial ecosystem.

The Bottom Line

The US dollar’s long-standing dominance is facing a formidable challenge from the BRICS alliance and its alternative global financial system.

Built on the principles of resource-backed stability, reduced debt dependency, and strategic use of local currencies and gold, the BRICS system represents a significant shift in the global financial landscape.

As the world moves towards a more balanced and equitable financial order, the question remains: will the enduring value of gold and energy resources redefine the future of global finance, potentially at the expense of the USD’s supremacy?

Only time will tell.

Contributing Article: https://vongreyerz.gold/is-the-usd-really-too-big-to-fail

© GCR Real-Time News

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“Endgame GCR” Podcast with Awake-In-3D and Marie G: Episode 1

“Endgame GCR” Podcast with Awake-In-3D and Marie G: Episode 1

On July 13, 2024 By Awake-In-3D

A Complete overview of the systems, components and triggers for the RV/GCR are discussed in detail in this episode of Endgame GCR

The “Endgame GCR” podcast, hosted by Awake In 3D and Marie G, is a series dedicated to exploring topics related to the global currency reset (GCR) and currency revaluation (RV).

The show aims to cover a wide range of subjects, from the infrastructure of the GCR financial system to potential trigger events such as the introduction of a new BRICS common trade currency.

The main goal of the “Endgame GCR” podcast is to combine traditional financial insights with modern FinTech developments, helping listeners understand the practical implications of GCR-related changes on their daily lives.

Each episode will focus on specific topics, with the hosts striving to present balanced and practical insights.

Key Points Discussed in this Episode of Endgame GCR

1. Introduction to the Alternative Financial System: The discussion begins with an explanation of the alternative financial system, emphasizing its gold component and decentralized finance (DeFi) base. This system incorporates blockchain, smart contracts, and transparency.

2. Role of DeFi and Distinction from CBDC: DeFi allows everyday people and businesses to operate in a free market without central banking constraints, unlike CBDCs controlled by central banks. The global nature of DeFi means it operates beyond jurisdictional limits.

3. Characteristics and Advantages of the Alternative System: The alternative system operates outside the fiat currency debt system, utilizing advanced technology. Its attractiveness lies in its efficiency, low cost, and ability to perform direct peer-to-peer transactions without intermediaries like banks.

4. BRICS Alliance and New Financial System: The BRICS Alliance is developing a new financial system, including a common trade currency called the unit (UNT). This system is designed to be open and not controlled by any single country, ensuring fairness and equality in global trade.

5. Details and Structure of the Unit (UNT): The unit (UNT) is 40% gold-backed and 60% backed by a basket of currencies from participating countries. This structure aims to provide stability and intrinsic value, reducing the risk of currency manipulation.

6. Impact on the US Dollar and Fiat System: The launch of the UNT and the new financial system will likely lead to a decreased reliance on the US dollar, accelerating its devaluation. The transition will be gradual, with potential bugs to work out, and will pressure the G7 countries to adapt.

7. Potential Responses from the US and Europe: The US is expected to resist joining the BRICS system, while Europe is more prepared for a transition to a gold-backed system. European countries have significant gold reserves and are better positioned for the shift.

8. Preparation in Europe: Several European countries have been preparing for a gold-backed currency for years, with strategic reserves relative to their GDP. This readiness contrasts with the US’s slower progress.

9. Political Challenges in the US: The US faces political gridlock that could delay its adaptation to new financial systems. This inefficiency contrasts with Europe’s more proactive measures.

10. Conclusion on the GCR and RV Opportunity: Both hosts believe in the GCR and RV opportunities and aim to provide clear, practical insights. They emphasize the necessity of global systems, legal frameworks, and a gradual transition to support these changes.

11.  The podcast is designed to provide listeners with deep dives into various aspects of the GCR and RV, offering different perspectives to help form comprehensive and informed opinions.

About the Hosts

Marie G joined the GCR community in 2021. Initially focusing on digital assets and FinTech, she owns and operates a Telegram site called GCR True News, covering financial changes, gold and silver markets, and global banking regulations.

Awake In 3D is the founder and owner of GCR Realtime News on Telegram, X/Twitter, and ai3d.blog. With involvement in GCR-related activities since 2010, Awake In 3D brings a macro perspective shaped by experiencing various financial events and crises over the decades.

Awake In 3D offers a broad view informed by extensive research and knowledge of traditional financial markets, while Marie G provides comprehensive insights from the FinTech and digital asset industry, focusing on their impact on everyday people.

Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog
Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews
Follow me on Twitter: @Real_AwakeIn3D

https://ai3d.blog/endgame-gcr-podcast-with-awake-in-3d-and-marie-g-episode-1/

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Endgame GCR Podcast: Episode 01

Awake In 3D and Marie G. discuss the systems, components and triggers for a Global Currency Reset (RV/GCR) and the collapse of the current financial system.

https://rumble.com/v56re7p-endgame-gcr-podcast-episode-01.html?mref=3rzr0s&mc=61ib6

Japanese Yen Meltdown Sparks Financial Panic: Awake-In-3D

Today’s Japanese Yen Meltdown Sparks Financial Panic

On June 26, 2024  By Awake-In-3D

Global Markets in Turmoil as Yen Crashes to Historic Level Against the US Dollar

In This Article:

1. Japan Government Prepares for Massive Yen Intervention

2. Impact on Gold, Oil, and Bond Markets

3. Concerns Over Global Financial Contagion

4. Expert Opinions on the Yen’s Future

The Japanese yen has tumbled to its weakest value since 1986 following comments from Japan’s Vice Finance Minister Masato Kanda. This historic decline comes despite government recent efforts to stabilize the currency, raising concerns about a global financial contagion.

Japan Government Prepares Massive Intervention

Vice Finance Minister Masato Kanda expressed serious concern over the yen’s rapid depreciation, labeling the moves as “one-sided.”

He reassured the public that the government is closely monitoring the market with a high sense of urgency.

Kanda emphasized that all necessary actions would be taken against any excessive movements, though he refrained from commenting on whether the current situation qualified as excessive.

Earlier statements by Kanda indicated that Japanese authorities were ready to intervene in the currency markets at any time. Finance Minister Shunichi Suzuki echoed this sentiment, stating that all possible measures would be taken to manage market developments.

Despite these reassurances, the yen’s value continued to slide, prompting further market volatility.

Pic 2

Yen Plummets to Historic Level Today: Rising Above 160 Yen to the US Dollar

Impact on Gold, Oil, and Bond Markets

The yen’s depreciation against the dollar creating a cascading effect on various markets today.

The stronger dollar has triggered significant selling in gold, oil, and treasury bonds. Investors are reacting to the uncertainty and potential for further market disruptions, resulting in increased volatility across global financial markets.

Gold, traditionally seen as a safe-haven asset, saw its value drop as the dollar strengthened.

Similarly, oil prices were impacted, with fears of a broader economic slowdown weighing on demand.

The bond market also experienced turbulence, with Japanese interventions reportedly funded through the sale of US treasuries.

Concerns Over Global Financial Contagion

The continued weakening of the yen has sparked fears of a broader global financial contagion.

Japan’s extensive, but unsuccessful interventions in the currency market have raised eyebrows internationally, particularly in the US.

The US Treasury Department recently added Japan to its “monitoring list” for foreign-exchange practices, reflecting growing concern over the potential impacts of Japan’s actions on global markets.

Experts worry that a collapse of the yen could trigger a domino effect, destabilizing other currencies and markets worldwide.

The inter-connected nature of global finance means that significant movements in one major currency can have far-reaching consequences, including leading to a global financial crisis.

Expert Opinions on the Yen’s Future

Market analysts are divided on the yen’s future trajectory. Some suggest that Japanese authorities might intervene if the yen’s value exceeds 160 against the dollar. While others suggest that authorities might wait for even more volatility before stepping in again.

Despite these differing views, the consensus remains that the yen’s path forward is fraught with uncertainty.

The government’s current measures appear woefully insufficient to stem the tide, and further much more drastic interventions will be necessary to prevent a complete collapse of the Yen.

The Bottom Line

The yen’s decline to its weakest level since 1986 has set off alarm bells in global markets. Despite reassurances from Japanese officials, the currency’s rapid depreciation has highlighted the limitations of government interventions.

As fears of a global financial contagion grow, the yen’s future remains uncertain, with increasing ramifications for markets and economies worldwide.

Contributing article: https://www.zerohedge.com/markets/yen-tumbles-1986-lows-after-japanese-currency-chief-comments-gold-oil-bonds-dump

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© GCR Real-Time News

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Pope Calls for New Financial System and Debt Jubilee: Supports BRICS Gold-Backed Currencies

Pope Calls for New Financial System and Debt Jubilee: Supports BRICS Gold-Backed Currencies

On June 26, 2024  By Awake-In-3D

Pope Francis Aligns with BRICS+ in Bold Financial Reform Proposal

In This Article

• Pope Francis’ urgent appeal to global finance ministers and economists

• The need for a new international financial architecture

• The 2025 Jubilee Year as a catalyst for debt relief

• Insights on the pope’s economic perspective

As the global fiat currency debt system faces undeniable collapse, Pope Francis has made a powerful appeal supporting international mechanisms for debt relief ahead of the Vatican’s 2025 Jubilee Year.

He lamented that poorly managed globalization has deprived millions of a dignified future.

In order to try to break the debt-financing cycle, it is necessary to create a multinational mechanism, based on the solidarity and harmony of peoples, that takes into account the global nature of the problem and its economic, financial and social implications.
Pope Francis, June 5th 2024

“We find ourselves facing a debt crisis that mainly affects the countries of the south of the world, generating misery and anguish, and depriving millions of people of the possibility of a dignified future,” said Francis on June 5. “Consequently, no government can morally demand that its people suffer deprivations incompatible with human dignity.”

The pope called for a new international financial architecture to break the financial-debt cycle that has contributed to a current global debt now estimated at $313 trillion.

He is likely referring to and putting his support behind the ongoing BRICS+ development of a new gold-backed currency and financial system when he speaks of the “Global South.”

Pope Francis’ Call to Action

Francis’ remarks were delivered during a meeting with participants in the “Addressing the Debt Crisis in the Global South” conference.

Organized by the Pontifical Academy of Social Sciences, the conference included some 50 finance ministers, economists, and international development agency heads.

The meeting comes as major legislation is being considered in New York and the United Kingdom on sovereign debt restructuring.

It occurs at a time when both church leaders and development groups are pushing for greater foreign debt relief, coinciding with the upcoming 2025 Jubilee Year, a once-every-quarter-century event that includes the Biblical tradition of forgiving debts.

“For this reason, dear friends, the Holy Year of 2025, to which we are heading, calls us to open our minds and hearts to be able to untie the knots of the ties that strangle the present, without forgetting that we are only custodians and stewards, not masters,” Francis told conference participants.

The Need for a New Financial System

Eric LeCompte, the leader of Jubilee USA, a network of religious and development groups advocating for international debt relief, described the pope’s remarks as “powerful and forceful.”

LeCompte, who attended the Vatican conference, noted that “secular institutions are aware that 2025 is a Jubilee Year” and are interested in using it to push new policies for a better global financial model.

 “Debt can no longer be disconnected from the broader economic stability of nations,” said LeCompte. He believes that the pope has always understood this connection, as evidenced by his proactive stance on economic reform.

“The north really owes a debt to the south because we took all of their resources and fueled industrialization,” he said. “We took from them and now we owe them a debt to be able to ensure their economic stability.”

The Impending Collapse of the Fiat Currency System

In his June 5 remarks to economists and financial leaders, Francis emphasized the need for a multinational mechanism for dealing with debt to counteract an “every man for himself” attitude, where “the weakest always lose.”

According to LeCompte, what the pope is really demanding is a “global transformation of our financial system” to address the collapse of the current fiat currency debt system.

While Francis is building on the teachings of Popes John Paul II and Benedict, LeCompte pointed out that Francis speaks from direct experience, having faced long-standing economic crises during his time as Archbishop of Buenos Aires.

“He stared down the barrel of a gun from these vulture funds in Argentina … and led his country through the greatest economic crisis the country had ever faced,” said LeCompte. “He has a direct understanding of these issues, saw what they did and saw what inequities in the financial system do to developing countries.”

The Bottom Line

Pope Francis’ call for a new financial system and a global debt jubilee ahead of the 2025 Jubilee Year is a clarion call for economic justice.

His emphasis on the interconnectedness of global financial stability highlights the moral imperative for global financial leaders to act.

The ongoing collapse of the global fiat currency debt system underscores the urgency of his appeal, as the world can no longer deny or wish away these critical issues.

The BRICS+ development of a new gold-backed currency and financial system offers a tangible solution, aligning with the pope’s vision for the future.

Contributing article: https://www.ncronline.org/vatican/vatican-news/ahead-2025-jubilee-pope-francis-rallies-global-finance-heads-back-debt-relief

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© GCR Real-Time News

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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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© GCR Real-Time News

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New BRICS+ Currency Is the Key to Global Financial Prosperity

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

1. The Superior Purchasing Power of UNIT-Based Currencies

2. Explaining the UNIT’s 2.5X Purchasing Power Leverage of Gold

3. Mechanisms Behind the Global Currency Reset and Revaluation

4. 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:

1. 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.

2. 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.

3. 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.

4. 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:

1. Gold Collateral: Minting UNIT tokens with local currencies and gold provides a stable, leverage-backed currency for international transactions.

2. Enhanced Value: The intrinsic value from gold backing and reduced transaction costs make UNIT tokens more valuable than traditional fiat currencies.

3. Plug-and-Play Solution: The ecosystem integrates seamlessly with existing financial infrastructure, minimizing complexity and reducing reliance on political or regulatory solutions.

4. 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:

1. Reduced Risk: UNIT’s stable value will lower the risk for all parties involved in trade and capital transactions.

2. Facilitate Development: The ecosystem will support the growth of an indigenous capital base in the Global South, reducing dependence on external sources.

3. 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.

4. 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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Introducing the Official Gold-Backed Currency That Will Change Everything

Introducing the Official Gold-Backed Currency That Will Change Everything

On June 21, 2024 By Awake-In-3D

Will the new BRICS+ gold-backed currency spark a global currency reset (GCR) and revaluation (RV) of currencies? Here’s its revolutionary design and purpose.

In This Article

1. Introduction to the new gold-backed UNT

2. Monetary Framework: A basket of currencies and gold

3. Stability and Resilience

4. Blockchain Integration and Future Developments

The pending release of the UNT, a new gold-backed BRICS+ currency, promises to transform the global fiat currency system dramatically.

Keep Watching

The UNT aims to provide a stable and resilient global currency alternative, free from political influence, ensuring long-term purchasing power stability.

The UNT is not a cryptocurrency, Central Bank Digital Currency (CBDC), or a stablecoin.

The UNT is backed by a basket of underlying assets, including gold, making it a unique and trustworthy currency system alternative that will shake today’s fiat currency financial landscape to it’s core.

Introduction to the new gold-backed UNT

The UNT, proposed with the ISO global currency code, is designed to be an apolitical currency, free from political interference, ensuring its neutrality in international trade and reserves.

Unlike traditional fiat currencies influenced by political and economic conditions, the UNT offers a more stable option. It will be exchangeable into and out of fiat currencies like the US Dollar, Euro, and more, facilitating a level playing field for international trade and transactions that will foster global economic stability.

The creation of the UNT addresses the need for a stable, resilient currency amidst the flaws of the post-Bretton-Woods financial system.

This new currency is expected to initiate a global currency revaluation (RV), significantly impacting exchange rates, especially against pure fiat currencies.

The gold-backed component of the UNT ensures strong purchasing power, making it a robust alternative to existing fiat currencies.

Also Read: Checkmate (Part 1) – How the BRICS Gold Currency will Force USA/Europe to an RV/GCR

Monetary Framework: A basket of currencies and gold

The UNT ecosystem operates on a fractal monetary framework, where each UNT token is backed by a basket of underlying assets, including a significant portion in gold (40%).

This structure promotes stability and reduces the reliance on any single national currency. By diversifying its asset base, the UNT aims to offer a more balanced and resilient global monetary system.

This framework allows for a new financial system that will operate independently of national currencies.

The UNT is not a cryptocurrency or a stablecoin. Instead, its value is linked to a basket of assets, and its market value will be influenced by supply and demand over time. This unique characteristic sets the UNT apart from other digital and fiat currencies.

Stability and Resilience

Designed to be more stable and resilient than national currencies, the UNT’s value will be less volatile than the components of its reserve basket. This stability is crucial for maintaining long-term purchasing power and trust in the currency.

The UNT provides a hedge against the volatility and political influences that affect fiat currencies.

The introduction of the UNT will create a significant revaluation of exchange rates (RV), especially against fiat currencies. This revaluation will lead to a global currency reset (GCR) for BRICS+ member nations adopting the UNT in global trade.

The UNT’s strong purchasing power will provide economic sovereignty and stability, making it a preferred currency for international transactions and reserves.

Blockchain Integration and Decentralized Autonomous Organization (DAO)

The UNT ecosystem leverages blockchain technology for node synchronization, reducing the costs and risks associated with rebalancing gold holdings.

This integration ensures that UNT tokens are free from capital controls and price manipulation, providing a secure and transparent system for international trade and finance.

The UNT is managed by a Decentralized Autonomous Organization (DAO), which operates without central authority, ensuring democratic governance and transparency.

A DAO is an organization represented by rules encoded as a computer program, controlled by organization members, and not influenced by a central government.

This decentralized governance model ensures that the UNT remains apolitical and transparent, adhering to the governance rules without constant issuer coordination.

Future Developments

The UNT ecosystem plans to include mercantile and capital stock exchanges, with commodities and financial instruments priced in UNT tokens.

These developments will enhance the UNT’s role as a stable store of value, investment, and reserve currency. The UNT payment protocol will support secure transactions, adhering to the governance rule-book, making it a reliable currency for international trade and cross-border payments.

The implementation of the UNT into the existing financial infrastructure will support essential financial functions such as electronic payments, trade finance, and credit origination.

This seamless integration will address trust issues in the global financial system and protect participants’ financial sovereignty from political interference.

The Bottom Line

The introduction of the UNT represents a significant shift in the global currency landscape.

By offering a gold-backed, politically neutral currency, the UNT aims to provide stability and resilience in international trade and finance.

As the UNT ecosystem continues to develop, it promises to bring about a major currency revaluation and a global currency reset, positively impacting economies worldwide.

Stay tuned for future parts of this Ultimate Guide to the BRICS UNT Currency, where we will dig much deeper into its various aspects and global financial implications.

Also Read: Zimbabwe’s Golden History, BRICS, and A New Gold-Backed Currency

Supporting article: https://investingnews.com/brics-currency/

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https://ai3d.blog/introducing-the-official-gold-backed-currency-that-will-change-everything/

Malaysian Currency Now On RV Path in BRICS Gold-Backed Alliance

Malaysian Currency Now On RV Path in BRICS Gold-Backed Alliance

On June 18, 2024  By Awake-In-3D

Prime Minister Declares Strategic Intention to Join BRICS Alliance which would lead to a significant RV of the Malaysian Ringgit (MYR).

In This Article

• Malaysia’s Formal Bid to Join BRICS

• The Anticipated Revaluation of the Malaysian Ringgit

• BRICS Gold-Backed Trade Currency and Its Implications

• Malaysia’s Strong Economic Contributions to BRICS

Malaysia’s strategic decision to join the BRICS economic bloc has sparked significant discussions regarding the future of the Malaysian Ringgit (MYR).

Prime Minister Anwar Ibrahim’s announcement highlights Malaysia’s intent to align with BRICS, potentially leading to the revaluation (RV) of the Ringgit through the bloc’s gold-backed common trade currency which will be composed of 40% gold-backing.

Malaysia’s Formal Bid to Join BRICS

Prime Minister Anwar Ibrahim’s recent declaration signifies a pivotal moment for Malaysia’s economic and diplomatic strategy. In an interview with Chinese news outlet Guancha, aired ahead of Chinese Premier Li Qiang’s visit, Anwar confirmed Malaysia’s intention to join BRICS, marking a crucial step towards diversifying its strategic relationships.

“We have indicated, as a policy, that we are joining,” said Datuk Seri Anwar. “We have made a decision. We are placing the formal procedures soon.” This move aligns Malaysia with a group of nations collectively challenging the Western-dominated global order, potentially reshaping the economic landscape.

The Anticipated Revaluation of the Malaysian Ringgit

One of the most significant implications of Malaysia joining BRICS is the potential revaluation of the Malaysian Ringgit.

The BRICS bloc plans to implement a gold-backed common trade currency. Inclusion of the Ringgit in this currency basket could significantly enhance its purchasing power and exchange rate, especially against fiat currencies like the US Dollar.

The revaluation of the MYR would not only strengthen Malaysia’s financial stability but also boost its attractiveness for foreign investments. This economic shift is expected to elevate Malaysia’s status in the global market, offering new opportunities for growth and development.

BRICS Gold-Backed Trade Currency and Its Implications

The BRICS bloc’s move towards a gold-backed trade currency is a strategic effort to reduce dependency on the US Dollar and foster economic sovereignty among member nations. For Malaysia, participating in this initiative means aligning the Ringgit with a stable and valuable currency system, enhancing its global economic influence.

This new currency system aims to facilitate smoother and more secure trade among BRICS nations, providing a robust alternative to the existing fiat currency system.

The anticipated revaluation of the Ringgit under this gold-backed regime is poised to offer Malaysia greater economic leverage and improved terms of trade.

Malaysia’s Strong Economic Contributions to BRICS

Malaysia’s decision to join BRICS is underpinned by its strong economic indicators and potential contributions to the bloc.

In 2024, Malaysia’s GDP is estimated to reach $445 billion USD, with substantial exports in key sectors such as digital/electronic devices, electrical machinery, mineral fuels, and industrial machinery. These economic strengths position Malaysia as a valuable member of the BRICS alliance.

Malaysia’s top export destinations in 2023 included major economies such as Singapore, China, and the USA, highlighting its significant role in global trade.

The nation’s diverse export portfolio, comprising electrical machinery, mineral oils, and animal or vegetable fats, among others, showcases its capacity to contribute effectively to a diverse BRICS economic bloc.

Experts, such as Datuk Prof Dr. Mohd Faiz Abdullah of Malaysia’s Institute of Strategic and International Studies (ISIS), emphasize the importance of Malaysia’s participation in BRICS. “Building our ties with these key countries will make our economy more resilient,” he noted, underscoring the strategic benefits of Malaysia’s move.

The Bottom Line

Malaysia’s formal intention to join BRICS represents a strategic maneuver with far-reaching economic implications.

The potential revaluation of the Malaysian Ringgit, driven by the adoption of a BRICS gold-backed common trade currency, positions Malaysia for enhanced financial stability and global economic influence.

Coupled with Malaysia’s robust economic contributions, this move promises to solidify the nation’s standing within the BRICS alliance, fostering new opportunities for growth and collaboration in the evolving global landscape.

Contributing articles:

• https://www.straitstimes.com/asia/malaysia-preparing-to-join-brics-economic-group-media-report-says

• https://www.sinardaily.my/article/218946/focus/national/joining-brics-will-diversify-malaysias-strategic-relationships-and-strengthen-its-economy

• https://trendeconomy.com/data/h2/Malaysia/TOTAL

• https://www.statista.com/statistics/319024/gross-domestic-product-gdp-in-malaysia/

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RV UNLEASHED: How the Indian Rupee will RV by 4,708% in the New Gold-based Currency System

RV UNLEASHED: How the Indian Rupee will RV by 4,708% in the New Gold-based Currency System

On June 15, 2024  By Awake-In-3D

It is strongly recommended that you read two of my previous articles on the gold-based BRICS Currency that I call the CTCU (Common Trade Currency Unit).

This article assumes that you already have a good understanding of the foundation and composition of the new BRICS CTCU gold-based common trade currency.

Here are my two previous articles explaining the BRICS CTCU:

1. Realizing Humanity’s Financial Freedom: The Rise of a New Gold-Based Currency is Underway
2. A Look Under the Hood of the Gold-backed BRICS Currency

This is going to be a lot to digest. But that’s ok. It took me months to figure out what you’re about to read.

BUT DO NOT BE HESITANT OR CONCERNED ABOUT UNDERSTANDING ALL OF THIS AT ONCE.

Keep studying it and join my Telegram Channel to ask questions. I do my best to answer member questions on a timely basis.

Here’s the link to join my Telegram Site: https://t.me/GCR_RealTimeNews

DISCLAIMER: THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY. I AM NOT A FINANCIAL ADVISOR. THIS IS NOT INVESTMENT ADVICE. I AM NOT ENDORSING OR RECOMMENDING THE PURCHASE OF ANY CURRENCY WHATSOEVER. ALWAYS CONSULT A PROFESSIONAL FINANCIAL ADVISER.

About the CTCU and Currency RVs

As the BRICS Alliance continues expanding and move closer to the introduction of their gold-backed Common Trade Currency Unit (CTCU), the global financial landscape is poised for a transformative shift.

This new system, aimed at countering the dominance of traditional fiat currencies like the US Dollar and the Euro, promises to significantly revalue the currencies of countries within the BRICS alliance.

This article explores the incredible implications of this new financial paradigm, detailing the process and calculations behind the anticipated revaluation.

Using the variables and formulas explained (in detail) further down in this article, this is how the Indian Rupee RVs against the US Dollar once the BRICS CTCU gold-based currency comes online.

Here are the basic assumptions used to determine the RV’d exchange rate:

• Price of Gold in US Dollars on the SGE (Shanghai Gold Exchange) This price per gram is assumed at the time the BRICS CTCU comes online but it could be higher: $80/gram or $2,500/ounce. Note: The price has already hit $78.86/gram on May 20th this year on the SGE.

• Gold backing of the CTCU: 40% or 0.4 grams per CTCU. This gold percentage has been mentioned repeatedly by the really smart folks planning the structure of the CTCU.

• The native currency component of the INR withing the new CTCU: 60%

• The Pre-CTCU exchange rate of the INR to the US Dollar: 83.58 INR per USD or 1.2 cents per INR (this is the most recent rate)

• The RV’d exchange rate of the INR to USD after the gold-based CTCU is in place and operational: 1.73 INR per USD or 57.7 cents per INR.

Meaning the Indian Rupee exchange rate will RV from it’s current 1.2 US cents/INR to 57.7 US cents/INR in US Dollar terms. This is a 4,708.33% percent increase in the Rupee’s exchange rate against the US Fiat Dollar.

This is just one currency example based on the calculations and variable defined below.

In my next article, I will do the calculations for the Iraqi Dinar, Vietnamese Dong (VND) and a few other currencies.

There are a few more variables involved for these currencies since they are artificially depressed and will go through a process of removing the zeros from their current note denominations.

Here are all the details you need to know to understand how I calculated this RV rate for the INR.

Understanding the Variables Needed to Calculate the New RV’d Gold-based Exchange Rate for any Currency

To help you understand how to calculate the change in exchange rates when a new gold-backed currency system is introduced, let’s break down the key variables you need to consider in simple terms:

1. Gold Price: This is the current price of gold per gram from the Shanghai Gold Exchange (SGE). Think of it as the store of value of a small piece of gold, like a gram.

2. Gold Component in CTCU: This is the amount of gold included in one unit of the new currency (CTCU). It represents the gold value in each unit of the new currency.

3. Currency Component in CTCU: This is the portion of the new currency that comes from the local money of a BRICS country, like the Indian Rupee.

4. Pre-CTCU Exchange Rate: This is the exchange rate of the local money to the US Dollar before the new gold-backed currency system is introduced. It shows how much local money you need to get one US Dollar before any gold-based currency system changes.

5. Post-CTCU Exchange Rate: This is the new exchange rate of the local money to the US Dollar after the new system is in place. It indicates how much local money will be needed to get one US Dollar after the revaluation.

6. Amount of Local Currency Held: This is how much of a specific country’s currency you have in your possession before the new system is introduced.

Putting It All Together

When the new gold-backed currency system is introduced, these variables determine how much your specific currency holdings will be worth compared to the US Dollar.

The price of gold from the Shanghai Gold Exchange and the amount of gold in the new currency set a base value for each unit of the new currency.

The portion of the new currency made up of local money combines the gold value with the local currency value. The old exchange rate shows the local money’s worth compared to the US Dollar before the change, while the new exchange rate shows its worth after the change.

Knowing how much country currency you have helps you understand how its value changes with the new gold-based system.

By considering these factors, you can see how the introduction of a new gold-backed currency would significantly increase the value of local money compared to major fiat currencies like the US Dollar.

This helps illustrate the potential financial impact and the revaluation (RV) that is on its way.

The Bottom Line

The planned introduction of the BRICS CTCU has the potential to revolutionize the global economic system, creating a multi-polar financial landscape where traditional fiat currencies and gold-backed CTCUs coexist. For countries within the BRICS alliance, this shift promises significant currency revaluation and enhanced economic stability.

As the BRICS nations prepare for this monumental change, the world watches closely, anticipating a new era of financial innovation and economic rebalancing. Holders of BRICS currencies should stay informed and consider the potential implications of this transformative development on their financial strategies and investments.

Detailed Math for Readers Who Want to Go Deep into the Calculations in Determining the New RV Exchange Rates

The CTCU is designed as a hybrid currency backed by tangible assets, primarily gold. Each CTCU unit consists of a specific amount of gold and the remaining value derived from the currencies of BRICS nations.

You can create a simple spreadsheet using these variables and formulas to play around with the numbers.

I realize these variables and formulas appear small on mobile devices. However, simply click on any of the mathematical or equation images below to get a larger view.

It’s best to view these calculations and equations on a laptop or desktop PC with a larger screen.

Pre-CTCU Exchange Rates and Initial Holdings

Post-CTCU Revaluation: Hypothetical Scenario

Summary of all the Variables Need to Calculate the RV’d Exchange Rate of Any Currency

All Calculations Needed to Arrive at the New RV’d Exchange Rate

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A Look Under the Hood of the Gold-backed BRICS Currency

A Look Under the Hood of the Gold-backed BRICS Currency

On June 14, 2024   By Awake-In-3D

This is the structure for a substantial RV of globally weaker currencies against the US Dollar, Euro, Yen and other major Fiat Debt System currencies.

The long-term stability of the BRICS Alliance’s financial vision hinges on the successful implementation of the Common Trade Currency Unit (CTCU).

Any currency backed by and a part of the CTCU infrastructure would essentially RV upwards against the Dollar and other major fiat debt currencies.

This innovative currency aims to provide a stable, reliable alternative to the US Dollar, backed by tangible assets including gold.

The CTCU is designed to enhance trade efficiency, foster economic stability, and reduce dependency on traditional fiat currencies.

Also Read: Realizing Humanity’s Financial Freedom: The Rise of a New Gold-Based Currency is Underway to learn about the path for this new gold-based currency to succeed as a powerful alternative the US Dollar and the Global Fiat Currency Debt System.

Understanding the CTCU

The CTCU operates within a decentralized ecosystem facilitated by a blockchain platform. Each authorized node within this ecosystem can issue settlement and payment units denominated in CTCUs. These units serve as a medium of exchange, unit of account, and store of value for cross-border transactions among BRICS nations.

The CTCU is pegged to a basket of assets to ensure stability and trust. Specifically, it is anchored to 1 gram of gold, with the remaining value equally divided between two currencies from BRICS countries.

This hybrid backing provides a robust foundation for the CTCU, mitigating the volatility inflationary devaluation typically associated with fiat currencies.

Example: Brazil’s Economic Transformation with the CTCU

Consider Brazil, a key member of the BRICS Alliance. By adopting the CTCU, Brazil can streamline its international trade processes and stabilize its economy.

Here’s how the CTCU can provide substantial value to Brazil and RV their currency:

1. Enhanced Trade Efficiency:
Brazil imports a significant amount of goods from China. Using the CTCU, Brazilian importers can bypass the complexities and costs associated with currency conversion and fluctuating exchange rates. The CTCU provides a stable and predictable medium of exchange, reducing transaction costs and increasing trade efficiency.

2. Stable Value Retention:
The CTCU’s value, pegged to gold and a basket of BRICS currencies, offers greater stability compared to the Brazilian Real, which can be subject to inflation and economic volatility. Brazilian businesses and individuals can hold CTCUs as a more reliable store of value, protecting their wealth from domestic economic fluctuations.

3. Improved Investment Climate:
The introduction of a CTCU-based bond market can attract foreign investment into Brazil. Investors seeking stable returns can purchase CTCU-denominated bonds, providing Brazil with an influx of capital for infrastructure and development projects. This increased investment can spur economic growth and development.

4. Facilitation of Sanctioned Trade:
In scenarios where Brazilian companies face trade restrictions with certain countries, the CTCU offers a viable alternative. Transactions conducted in CTCUs can circumvent traditional banking systems that are subject to international sanctions, allowing Brazil to maintain vital trade relationships without geopolitical constraints.

Any currency backed by and a part of the CTCU infrastructure would essentially RV upwards against the Dollar and other major fiat debt currencies.

Operational Mechanism

To utilize the CTCU, Brazilian companies would convert their local currency (Real) into CTCUs through authorized financial institutions. These CTCUs can then be used to conduct trade with other BRICS nations. For example, a Brazilian company importing electronics from China would pay the Chinese exporter in CTCUs. The Chinese exporter can then use the CTCUs to purchase raw materials from South Africa or invest in Russian energy projects, creating a seamless and efficient trade network.

Trust and Transparency

The decentralized nature of the CTCU ecosystem, supported by blockchain technology, ensures transparency and security. Each transaction is recorded on an immutable ledger, providing a clear and auditable trail of all CTCU movements. This transparency builds trust among BRICS nations and global investors, reinforcing the credibility and stability of the CTCU.

The Bottom Line

The CTCU represents a transformative leap towards a more stable and equitable global financial system. By addressing key economic challenges and providing a reliable alternative to fiat currencies, the CTCU can significantly enhance the long-term financial stability of BRICS nations. As Brazil’s example illustrates, the CTCU has the potential to revolutionize trade, investment, and economic growth within the BRICS Alliance, heralding a new era of financial freedom and prosperity.

Contributing article: https://www.finmarket.ru/main/article/6194585

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Realizing Humanity’s Financial Freedom: The Rise of a New Gold-Based Currency is Underway

Realizing Humanity’s Financial Freedom: The Rise of a New Gold-Based Currency is Underway

On June 14, 2024  By Awake-In-3D

Exploring the Revolutionary RV Potential of the BRICS Alliance’s New Gold-Backed Currency and Releasing a Global Financial Reset

In This Article:

• Introduction to the BRICS Alliance’s Bold Ambition

• Key Ingredients for the Success of a BRICS Gold-Based Currency

• Overcoming Challenges and Real-World Implications

• Overview of the New Gold-based Currency Structure

• The Transformative Impact on Global Trade and Sanctions

The BRICS Alliance is on the cusp of a financial currency and system infrastructure revolution.

They aim to disrupt the US Dollar-dominated fiat currency system with a groundbreaking gold-backed currency.

The new gold-based currency is designed to enhance trade efficiency, foster economic stability, and reduce dependency on traditional fiat currencies.

This initiative promises to reset the global financial order, offering a beacon of hope for a debt-free future. This article addresses the vital elements required for the success of this new gold-based currency, the challenges it faces, and its transformative potential on global trade and sanctions.

Introduction to the BRICS Alliance’s Bold Ambition

The BRICS Alliance represents a dynamic coalition of emerging economies determined to create a fairer, more balanced global financial system.

Their proposed gold-backed currency, has no name or currency symbol at this time, so for now I will continue to refer to it as the CTCU (for common trade currency unit).

With its introduction, the world will witness a shift towards financial freedom, trade equality and renewed prosperity.

Key Ingredients for the Success of a BRICS Gold-Based Currency

1. Ensuring Currency Stability and Free-Floating Mechanism

For the CTCU to thrive, it must be allowed to float freely in the global market. Currently, the Chinese Yuan does not meet this criterion, limiting its potential as a reserve currency. A freely floating CTCU, supported by stable and transparent economic policies from all BRICS nations, is essential for success.

2. Establishing the CTCU as a Genuine Reserve Currency

A successful CTCU would be recognized and accepted as a reserve currency by central banks worldwide. This involves building trust in the currency’s stability and reliability, backed by the economic strength and resources of the BRICS nations.

3. Development of a CTCU-Based Bond Market

A functioning bond market is crucial for the widespread use of the CTCU. It provides a mechanism for investing and lending, offering returns on CTCU holdings and enhancing its appeal to global investors.

4. Widespread Acceptance and Willingness to Trade in CTCUs

For the CTCU to succeed, businesses and individuals must be willing to trade and accept Bricks over local currencies or the US Dollar. This requires significant shifts in trading practices and confidence in the new currency.

5. Overcoming Export Mercantilism

China’s current export mercantilism—prioritizing trade surpluses and accumulating foreign reserves—must be addressed. Without changes in this policy, the CTCU would face similar challenges as the Yuan in becoming a global reserve currency.

6. Building Trust

Trust is a fundamental component of any currency’s success. The BRICS nations must demonstrate a commitment to maintaining the CTCU’s value, backed by tangible assets like gold, and ensure transparency in their financial practices.

Overcoming Challenges and Real-World Implications

Export Mercantilism and Trade Imbalances

China’s historical trade surpluses have led to the accumulation of US Dollar reserves. For the CTCU to succeed, there must be a shift towards balanced trade practices. This change would involve significant economic reforms and a willingness to move away from mercantilist policies.

Trade Dynamics and Practical Challenges

Global trade operates at the individual and business level, rather than between nations. A Brazilian business, for example, would need to convert local currency to CTCUs, engage in transactions, and ultimately manage the CTCU holdings. The lack of a CTCU-based bond market and other financial instruments complicates this process, reducing the currency’s attractiveness.

Case Study: Saudi Aramco and Brick Transactions

Consider a scenario where Saudi Arabia’s Aramco sells oil in CTCUs. The company would need to convert CTCUs to other currencies or financial instruments to utilize its earnings. Without a developed CTCU financial ecosystem, this process remains cumbersome and impractical.

The Transformative Impact on Global Trade and Sanctions

Sanction Avoidance and Digital Currencies

While the CTCU faces significant challenges as a global reserve currency, it holds promise for sanction avoidance. Countries and individuals subject to US sanctions could use the CTCU to conduct transactions beyond the reach of US financial systems.

The development of digital currencies further facilitates this process, offering a more covert means of trade.

US Sanctions and Global Retaliation

The US has extensively used sanctions as a foreign policy tool. The proliferation of a BRICS gold-based currency, coupled with decentralized digital ledger technology, would undermine this strategy by providing alternative transaction mechanisms.

This shift may not dethrone the US Dollar completely, but could significantly limit the US’s ability to enforce sanctions globally.

Long-Term Financial Stability

In the long run, a successful CTCU would contribute to a more diversified and stable global financial system.

However, this requires overcoming significant economic, political, and trust barriers. The establishment of the BRICS Common Trade Currency Unit (CTCU) and its potential gold backing illustrates ongoing efforts to achieve these goals.

Overview of the CTCU Currency Structure

The long-term stability of the BRICS Alliance’s financial vision hinges on the successful implementation of the Common Trade Currency Unit (CTCU).

This innovative currency aims to provide a stable, reliable alternative to the US Dollar, backed by tangible assets including gold. The CTCU is designed to enhance trade efficiency, foster economic stability, and reduce dependency on traditional fiat currencies.

The CTCU operates within a decentralized ecosystem facilitated by a blockchain platform. Each authorized node within this ecosystem can issue settlement and payment units denominated in CTCUs.

These units serve as a medium of exchange, unit of account, and store of value for cross-border transactions among BRICS nations.

The CTCU is pegged to a basket of assets to ensure stability and trust.

Specifically, it is anchored to 1 gram of gold, with the remaining value equally divided between two currencies from BRICS countries.

This hybrid backing provides a robust foundation for the CTCU, mitigating the volatility typically associated with fiat currencies.

Also Read: A Look Under the Hood of the Gold-backed BRICS Currency to understand how the new BRICS gold-based currency unit will RV smaller country currencies upwards against the major fiat debt currencies (such as the USD and EURO).

The Bottom Line

The BRICS Alliance’s pursuit of a gold-backed currency represents a bold move towards reshaping the global financial landscape.

While the path to success is fraught with challenges—ranging from establishing trust to developing robust financial markets—the potential benefits are substantial.

A successful CTCU would facilitate sanction avoidance, promote economic stability, and provide a meaningful alternative to the US Dollar-dominated system.

Contributing article: https://mishtalk.com/economics/what-would-it-take-for-a-bric-based-currency-to-succeed/

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