Russia And China Officially Announce A "New Global Reserve Currency"quoththeraven.substack.com/p/russia-and-china-officially-announce
312 sats \ 16 comments \ @cryptocoin 24 Jul 2022 bitcoin
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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.
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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.
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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
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0 sats \ 1 reply \ @cryptocoin OP 24 Jul 2022
global reserve currencies are adopted in a voluntary manner
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.
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20 sats \ 0 replies \ @2big2fail 24 Jul 2022
agree.. but regional trade won't make it a reserve currency
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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.
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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.
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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.
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0 sats \ 0 replies \ @cryptocoin OP 24 Jul 2022
Things are about to get interesting, I suspect.
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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
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133 sats \ 1 reply \ @cryptocoin OP 24 Jul 2022
Following the link to the RT article from June, I see this:
“The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out,” he said at the BRICS business forum.
BRICS developing new global reserve currency – Putin https://www.rt.com/business/557627-brics-developing-global-reserve-currency
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20 sats \ 0 replies \ @om 24 Jul 2022
I do not consider Putin to be a credible source.
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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/
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0 sats \ 0 replies \ @cryptocoin OP 24 Jul 2022
The developments obviously further my long held belief that a gold backed global reserve currency is on its way - something I have been writing about for months.
I’m also stunned that nobody seems to care that arguably the largest shift on the global macroeconomic playing field over the last half century may be taking place.
Sure, under the context of the conflict in Ukraine, the news may seem “par for the course” of sorts, which may result in the media and the financial world downplaying it. But put this piece of information out there on its own, without context - that there is a coordinated global challenge taking place to the U.S. dollar - and it would be the biggest news story in decades. Imagine if China and Russia just dropped this out of nowhere? Now, remember that both countries have been working on, and preparing for, this situation for years.
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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...
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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
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