160 sats \ 1 reply \ @sb 24 Jul 2022
It seems to me that they will "gold back" this currency on paper, leading to strengthening against other Fiat ponzis. But then, of course, no "free citizen" of either country would be allowed to redeem their cash for gold, and leave the borders of the nation state. Best of both worlds for the autocrats of these nations. Gold has one too many fatal flaws.
reply
10 sats \ 0 replies \ @cryptocoin OP 24 Jul 2022
Russia even bailed on their April offer to pay 5,000 ruble per ounce of gold. The ruble has appreciated since then as only 4,100 rubles are needed to buy an ounce of gold more recently.
But the currency described in the RT article is based on a basked of the national currencies of the BRICS.
reply
30 sats \ 2 replies \ @2big2fail 24 Jul 2022
also global reserve currencies are adopted in a voluntary manner. announcing "a hope and dream" is one thing but getting adoption is completely different.
Just look at the SDR https://www.investopedia.com/terms/s/sdr.asp and the Bancor idea https://en.m.wikipedia.org/wiki/Bancor both with decent support yet zero real world use
reply
0 sats \ 1 reply \ @cryptocoin OP 24 Jul 2022
Tell that to Gadhafi! Oh wait ...
Anyway, there's likely going to be a variety of changes occurring all at once. This BRICS basket (or maybe it is just a RIC basket) doesn't even need to be adopted outside of the small set of countries participating for them to be displace the use of the dollar for cross-border payments. Bitcoin may even play a part in that (as the method to swap between the local currency and the currency basket), who knows.
reply
20 sats \ 0 replies \ @2big2fail 24 Jul 2022
agree.. but regional trade won't make it a reserve currency
reply
25 sats \ 3 replies \ @KingZing 24 Jul 2022
I would be very impressed if this becomes something major.
Gold backed doesn't mean anything if the countries/individuals cannot redeem the currency for gold.
let alone having a gold backed reserve currency where the gold is stored in Russia, the very country that started an invasion and imposed a capital control.
No one knows how many chinese gold are legit, we are talking upto 4% in its reserve could be fraud
all these effort wasted, they should have just adopted bitcoin.
reply
0 sats \ 2 replies \ @cryptocoin OP 24 Jul 2022
Russia was dropped from SWIFT (for all but a few types of transactions), so Russia has to proceed with another solution that works cross-border. As described in the link in the newsletter that leads to RT, the currency basket for the BRICS countries is one part, and the payment network that uses that currency basket is another part. Until that exists, we'll see more activity like what India resorted to to pay Russia for oil, by buying UAE dirham and paying Russia with that.
So whether this currency is based on gold, a basket of national currencies, or some other combination, or digital unit even -- it's clear dollar hegemony is ending.
reply
20 sats \ 1 reply \ @KingZing 24 Jul 2022
The world order has been maintained by trades relationship and Russia got himself kicked out for a legit reason.
The gold backed means nothing if the trade partners dont want to be dragged into its mess.
Russia GDP has already been crashing for a couple of years, it will be China and India who make or break the trade.
And we know china has been pushing for RMB becoming more globally presence worldwide.
reply
0 sats \ 0 replies \ @cryptocoin OP 24 Jul 2022
Things are about to get interesting, I suspect.
reply
20 sats \ 3 replies \ @2big2fail 24 Jul 2022
i don't see any credible evidence in this opinion piece that there is a new "currency" being announced
reply
133 sats \ 1 reply \ @cryptocoin OP 24 Jul 2022
Following the link to the RT article from June, I see this:
BRICS developing new global reserve currency – Putin
https://www.rt.com/business/557627-brics-developing-global-reserve-currency
reply
20 sats \ 0 replies \ @om 24 Jul 2022
I do not consider Putin to be a credible source.
reply
10 sats \ 0 replies \ @cryptocoin OP 27 Jul 2022
Another post, here on SN, with an article on the topic:
Russia, China, BRICS plan new int’l reserve currency
#50332
https://www.themorning.lk/russia-china-brics-plan-new-intl-reserve-currency/
reply
0 sats \ 0 replies \ @cryptocoin OP 24 Jul 2022
reply
0 sats \ 0 replies \ @selfish_gene 24 Jul 2022
будет не удивительно. если сразу 5 стран и 65% мира скажет. биткоин это наш резерв... прикинь что начнётся...
reply
0 sats \ 0 replies \ @cryptocoin OP 24 Jul 2022
This article was also shared on ZeroHedge, albeit with a slightly different headline:
Did Russia And China Just Announce A "New Global Reserve Currency"?
https://www.zerohedge.com/markets/russia-and-china-officially-announce-new-global-reserve-currency
reply