The BRICS Will Use a Gold Standard

Contents: (1900 words)

Abstract: It’s All One Thing

1. The Currency
2. The Unit and Technology
3. The BiS Role
4. The G7 Problem, Solved With Gold and Silver
5. The Store of Value
6. The BRICS Challenge to U.S. Dollar Hegemony
7. The Three Phase Plan
8. The End of Dollar Dependency
9. The National Approach to Internationalism
10. Related

Abstract: It’s all one thing.

Authored by GoldFix ZH Edit

Given the following realities; the BRICS and those that wish to trade with them must go on a gold standard in part or in whole. Why?

It’s all about supply chains and payment chains. The US must rebuild supply chains to remain self-sufficient in certain commodities or it must trade with the BRICS on the BRICS terms. And that means with Gold in hand

The BRICS, in turn, must build payment chains (and value-added portions of supply chains) to replace the SWIFT system. Either that or they must then remain dependent on the US. And that means with the USD in hand

The alternative to ignoring these choices between economic self-sufficiency and a Gold standard for continued international trade is: isolation, misallocation and misuse of resources, and finally escalation of war.

What follows is a description of the situation, a contextual overview of the BRICS plan, and how the G7 must continue to respond over the next 5 years.

1- The Currency:

The BRICS are in the process of creating a settlement medium (currency, medium of exchange) for international trade comprised of Gold and other assets deemed separable from Dollar influence.

Delivery and receipt of this Settlement Medium concurrent with the reciprocal goods ( the goods bought with the Settlement medium) exchanged for said Medium will make final all transactions negotiated.

This Currency will entitle to the bearer a uniform basket of assets (commodities, currencies, bonds etc) deemed worthy as stores of value amongst the users endorsing it. On demand and likely physically accessible to make participant accounts current

 

2- The Unit and Technology:

The currency will make use of Blockchain. In doing so this will serve as an immutable contract between negotiating parties. In combination with other precautionary measures,1 it will give reasonable assurances against fraudulent representations as to what the currency has actually backing it.

The combination of UNIT type prorata measurements, Blockchain type security, and Current Accounting economics it is believed will serve to solidify the nascent currency’s denomination, reliabililty, and value.

4- The G7 Problem, Solved With Gold & Silver:

It is believed the West’s G7 Central Banks will need to have BRICS currency exposure in their reserve to better hedge their own economic risks. Failing literally to have that BRICS currency, the G7 CBs and sovereign wealth funds will simply continue to accumulate the assets (Gold, Silver etc) deemed important (or hard to get on demand like Gold and Silver) within the Store of Value basket the BRICS created. in other words, they will simply reverse engineer the basket and buy the parts needed.

The G7 CBs can then trade by creating their own mirror basket of Eastern Currencies, bonds, and Gold in what will likely be an IMF/SDR type of basket for risk purposes if ever needed.

6- The BRICS Challenge to Dollar Hegemony

For over a decade, discussions have simmered about moving away from the U.S. dollar. Recently, these ideas have taken a more concrete shape, driven by the BRICS nations, which are positioning themselves as a counterbalance to Western influence.

To solidify this status, BRICS needs two critical elements: an independent currency system and a framework for military-political security among its members. While the latter is less urgent at present, the creation of an alternative currency could soon become a reality.

7- The Three Phase Plan

BRICS is advancing a three-step plan to establish a new international currency. This includes:

1. adopting a gold standard, 7
2. creating a unified payment system with advanced technologies,
3. and promoting central bank digital currencies (CBDCs).

This initiative aims to reshape the global economy, challenging the dominance of the U.S. dollar established since the Bretton Woods Conference.

The BRICS nations have been increasing their gold reserves, now totaling 6.3 thousand tons. As the world's largest gold buyers since 2022, their actions signal a clear intention to develop a new global currency

The success of this new currency will hinge on the economic and demographic strengths of the BRICS countries. Together, they account for $29.5 trillion, or roughly 30% of global GDP, and a population of 3.5 billion people, providing a strong foundation for the currency’s circulation.

8- The End of Dollar Dependency

To achieve financial independence from Western systems, BRICS is developing its own payment systems and strengthening digital currencies. Russia's Ministry of Finance is working on a platform to facilitate money transfers between BRICS countries, aiming to reduce the impact of Western sanctions.

China leads in digital currency implementation, with the People's Bank of China making significant strides. Although currently limited to domestic use, China’s digital currency has substantial turnover. Beijing is expanding its cross-border CBDC project, mBridge, involving Hong Kong, Thailand, the UAE, and 25 observer countries.

Russia is also progressing with its digital ruble, launched in a pilot project in August 2023. This digital currency is now accepted in 11 Russian cities, with plans for further expansion.

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