- A fresh wave of analyst speculation suggests that the BRICS could act on its gold-backed “UNIT” currency proposal.
- There has yet to be an official confirmation from the group of nations, but discussions continue about alternative trade settlement systems across these countries.
Analysts have begun to reinforce rumors of a gold-backed “UNIT” currency being created by the BRICS bloc to facilitate trade and other financial transactions among its members. Renowned American entrepreneur Robert Kiyosaki highlighted the grave implications of the said BRICS currency on the dollar, while encouraging investors to diversify into assets like Bitcoin and gold instead of the dollar.
Kiyosaki Reignites BRICS “UNIT” Currency Speculation
While there’s yet no official announcement by the BRICS bloc about the creation of a UNIT currency backed by gold and local currencies of member nations, speculations began to gain traction on Friday regarding the revolutionary currency.
Kiyosaki stated that the “gold-backed money” will be the end of the US dollar. He highlighted the need for investors to stay informed on the latest monetary trends so that they can make the most out of the ever-changing landscape.
As he has always advocated, savers in US dollars will set themselves up for losses due to hyperinflation. Instead, the Rich Dad, Poor Dad author advises investors to own gold, silver, Bitcoin, and Ether in order to secure their financial future.
BRICS Exploring Common Currency Initiatives
At the South Africa BRICS summit in 2023, the member countries agreed to explore the possibility of having a shared currency. Such a currency will facilitate efficient international trade with no sanctions and restrictions, especially from the US, and reduce transaction costs.
Russia has been at the lead in the push for a common currency, strongly supported by China and Brazil. The move to end US hegemony led to solutions like the BRICS Bridge, through which central banks enable cross-border transactions using their own Central Bank Digital Currencies, facilitated by an automated “cross-border interbank system.”
Similarly, at the 2024 BRICS summit in Russia, BRICS teased a banknote featuring flags of its member nations—Brazil, Russia, India, China, and South Africa, sparking global interest in the possible results of this financial power play between the bloc and the US. Russia’s
President Vladimir Putin stated that the unveiling of this currency was not to slight the US dollar, but to show the bloc’s readiness to explore other options, should the US dollar remain restricted.
UNIT Could Alter Global Macro Economics
The UNIT currency also falls among the initiatives that are being considered in BRICS’ cold war against dollar hegemony. Reliable sources suggest that the UNIT is only a proposal to the bloc and not an official BRICS initiative.
UNIT, designed by the International Reserve and Investment Asset System (IRIAS), is not issued by any particular nation, but would serve the legitimate interests of member states. Each coin would be backed by a reserve consisting of 40% gold and 60% fiat currencies of members.
It runs on a decentralized system that allows nodes to mint tokens by depositing the necessary assets. UNIT is designed to end overdependence on a single reserve currency like the dollar and foster financial interdependence, which facilitates cross-border trade.
Despite being one of the possible options in the BRICS common currency agenda, the bloc has yet to issue any official statement about plans to explore the UNIT currency.
