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25 sats \ 0 replies \ @Trinidad 22 Jan 2023 freebie
The concept of BRICS currency framework vs USD has been around for a long time. At least since 2013 as far as I remember. The problem is that these countries have very different geopolitical goals and each pushing their agenda.
For example, China in alliance with S.Africa wanted to settle all BRICS trade in Yuan. Which was a no-no for Putin. It would put him in the same spot as he is now with us dollar.
On the other hand there are many elements in play for USD to keep the hegemony.
At some point I thought maybe BRICS could implement at least their own payment settlement system, an alternative to SWIFT, but that didn't happen neither.
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25 sats \ 1 reply \ @TheBTCManual 22 Jan 2023
There's a lot of talk about this, but I haven't seen any information on how this will work, as someone who is in a BRICS country you hear zero about this from local media nor any communication from our central bank
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1 sat \ 0 replies \ @cryptocoin OP 22 Jan 2023
Probably the reason they aren't saying much is it is still being figured out how it would work. Here's the framework:
BRICS Contingent Reserve Arrangement
https://en.wikipedia.org/wiki/BRICS_Contingent_Reserve_Arrangement
From what I can tell it is mean to work along the lines of the Chiang Mai Initiative.
Chiang Mai Initiative
https://en.wikipedia.org/wiki/Chiang_Mai_Initiative
But now there is China and South Africa wanting to expand to include others, and Russia and India wanting to not expand. So they got things to work out yet it seems.
But unlike IMF's SDR which are issued by the IMF, this R5 (or now, R5+) is just a reserve pool allocation, not a currency that is issued.
But there's no info I've seen (from casual search) that says how this would work as far as allocation. If South Africa is supposed to kick in enough rand to have an allocation of like 10% of the reserve pool, what happens when their exchange rate increases or decreases? Would they have to kick in more, if the rand loses value? And how often is that rebalancing occurring? etc., etc.,
It will be interesting. Not a single one of these are publicly discussing how bitcoin fits in. They want to move away from the dollar, that I get. But if these emerging market currencies get decimated because of bitcoin, the BRICS / R5+ becomes more greatly tied to China's currency.
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0 sats \ 0 replies \ @cryptocoin OP 21 Jan 2023
Here's the corresponding video:
BRICS challenges USD: Financial multipolarity | Geopolitical Economy Report 📺
#125278
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