by Mike Maharrey
The BRICS economic block is pushing forward with plans to develop a system that would facilitate international payments outside the dollar system, with gold serving an important role in the scheme.
According to the Russian news agency TASS, BRICS officials are “developing a wide range of instruments for creating an inclusive international financial system.”
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Andrey Mikhailishin heads up the BRICS Business Council task force on financial services. He told TASS parts of the plan will be presented at the Autumn BRICS summit at the end of October.
Several of the projects in development include a common unit of account (a currency), a platform for international payments using a BRICS digital currency, a payment system, a settlement depository, an insurance system, and a BRICS rating alliance.
According to TASS, the key to the new system with be “decentralization of international interaction.” The settlement depository will rely on blockchain technology “to record securities and exchange them.”
Gold will play an important role in the system.
The common unit of account would be pegged by 40 percent to the price of gold. The other 60 percent would be pegged to a basket of BRICS currencies. According to Mikhailishin, this approach would make it “a convenient and universal instrument.”