pull down to refresh
0 sats \ 2 replies \ @TomK OP 16 Feb 2023 \ parent \ on: BRICS: GOLD-Backed Reserve Currency In Preparation? bitcoin
Good point. Maybe rising the gold quota on the CBs balance sheets further on? How could a possible US sanctions regime look like that punishes participants like Brasil or India?
That could be one, but gold can always be manipulated with paper gold markets to "smooth" it out and buy you some time to custody the real stuff by CBs.
I don't know but from my perspective unwinding isn't easy, you can't expect lets say Brasil businesses to just cut ties with the US if there is no offsetting demand offering equal or better compensation that's just not going to work
I cant see this being a hard stop but more a migration, if your BRICS settlement nations are giving you better pricing and access to market, why push your brazillian lumber to the US? It needs to make economic sense or you're just going to kill industry
But stranger things have happened, I never thought they'd take another countries reserves and hard stop on Russian energy but here we are lol but happy to speculate with you
reply
I even can't imagine a faster transition from a micro economic pov. And the banking system will need a lot of back stop to implement a new settlement layer too. Interesting times, indeed!
reply