The BRICS Are a Scam and Will Never Beat the Dollar \ stacker news ~econ

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The BRICS Are a Scam and Will Never Beat the Dollar www.youtube.com/watch?v=Eg67t8r286I

489 sats \ 26 comments \ @kristapsk 9 Nov econ

They don't have to build any new currency or beat the dollar, building an alliance of countries bypassing the USD is enough to get the US into big economic trouble. Then they will realize that it is much easier to use bitcoin

26 sats \ 0 replies \ @flat24 9 Nov

I think that the BRICS are quite real and that they will mark a before and after in the entire global geopolitical and economic plane. It is not for nothing that they possess half of the planet's population and a good amount and diversity of valuable resources for humanity.

Are the BRICS seeking to destroy the dollar? I personally do not believe that is what it is about, they are simply creating a parallel and alternative system. To avoid US intervention, and that the US uses the dollar against one of them again, as happened with Russia. And being a little paranoid, I would bet that they use bitcoin to move their payments, after what happened with the SWIFT system. Because something that we can be totally assured of is that none of them will give up the sovereignty they have over their own FIAT currency (turn off the printing press) to adopt some new currency created by all of them or some existing currency of one of the member states.

3 sats \ 11 replies \ @Rothbardian_fanatic 9 Nov

OK, if you say so! All the fiat money is a scam, a bankster scam. If they make the backing of their money commodities, not just hot air, could it be more real than the dollar? Just askin’ for a friend.

11 sats \ 10 replies \ @kristapsk OP 9 Nov

No country in the world nowadays backs it's money by anything apart from it's military, police and other institutions. Central banks buying gold (or Bitcoin) doesn't mean it's currency is backed by those reserves.

0 sats \ 9 replies \ @Rothbardian_fanatic 9 Nov

If they are doing commerce in it, isn’t it being backed by something other than guns and hot air? If cross-boarder transactions are settled in those “currencies” aren’t they money. BTW, money is what the people say it is, not the state.

1 sat \ 8 replies \ @kristapsk OP 9 Nov

Biggest of BRICS currencies is CNY and it's irrelevant at global scale.

10 sats \ 7 replies \ @Rothbardian_fanatic 9 Nov

If they start backing it with gold, silver, BTC and oil, it will be the most relevant. With the SWIFT system being shut out of BRICS or becoming just another choice for transfers, I think the dollar will be toast and all the treasury bills dumped like hot potatoes.

0 sats \ 6 replies \ @kristapsk OP 9 Nov

If they start backing it

They won't.

0 sats \ 5 replies \ @Rothbardian_fanatic 9 Nov

OK, I take your word for it, not theirs.

0 sats \ 4 replies \ @kristapsk OP 9 Nov

theirs

Has there been promises about unified currency backed by something?

view replies

0 sats \ 0 replies \ @SwapMarket 9 Nov

Yes. Because Bitcoin is a better contender to the dollar.

0 sats \ 0 replies \ @TomK 9 Nov

But they will establish an energy conglomerate with rising pricing power which dooms at least the Euro (you can already see it since the eurocommies sanctioned russian gas). Could be a bipolar world over some time

0 sats \ 1 reply \ @TheBTCManual 9 Nov

Lol I don't think anyone legitimately thought they would destroy the dollar, the dollar will destroy itself, and it is its only enemy.

BRICS is just there to reduce their own exposure to the dollar and remove some settlement volume in the same way Bitcoin does! And even then there will be tether to the dollar and brics just like theres a tether to dollar and bitcoin

0 sats \ 0 replies \ @nym 9 Nov

Yes exactly

0 sats \ 0 replies \ @Solomonsatoshi 9 Nov

Naive BS that ignores the reality that BRICS Pay is a vehicle for the Chinese E-Yuan.

Name a country that can afford not to trade with China?

Silence.

BTW the USD was fixed for decade and it was the global reserve currency.

The podcasters arguments are flawed and ignorant of monetary and trade realities.

0 sats \ 6 replies \ @Solomonsatoshi 9 Nov

https://www.ledgerinsights.com/bis-hands-over-mbridge-cbdc-payment-system-after-brics-controversy/

https://www.iol.co.za/news/politics/opinion/cross-border-payments-for-brics-and-africa-chinas-innovation-leading-the-way-6ea7296e-4375-47b8-bb1c-041ba0d395fb

0 sats \ 5 replies \ @xz 9 Nov

Thanks for posting some weekend reading. Dont' know if I can stomach the YT.

Is the TLDR that BIS/China is considering opensourcing mbridge tech-stack so that the e yuan may oneday integerate with SWIFT, making it extensible and hackable for other governments, one day? lol

0 sats \ 4 replies \ @Solomonsatoshi 9 Nov

No.

2 sats \ 3 replies \ @xz 9 Nov

So, mbridge is a central bank payments or remitance system and can connect with existing inter-bank payments (faster payments and realtime gross settlements) and maybe SWIFT, because they are sitting on the sidelines and stand to loose out.

So, it’s a competitor to SWIFT. Undoubtedly SWIFT has had little innovation due to their exhorbitant privilage of being sole arbitrator of global settlement, and is therefore faster and more efficient in being a settlement layer, fascilitating currency swaps.

“Turning to technology, the mBridge ledger is decentralized, with central banks and commercial banks operating their own nodes, databases, and key paris. According to PBoC’s Mr Mu, who leads the technical sub committee, each bank has autonomy over its own system. Central banks participate in the blockchain consensus, but commercial banks do not.”

This part I’m not clear on, how do central banks ‘participate’.

“While part of the system is based on Ethereum, some of the technology was developed in China, including the novel consensus mechanism.”

Sounds sketch.

“The aim is to fully open source the code in the future, but for now all the central banks have access to the source code.”

More sketch.

“Banks have to pre-fund mBridge payments, whereas traditionally they relied on correspondent banks for this. Plus the banks need to manage the liquidity of both fiat currency and the CBDC..”

So, central banks need to pay in to it, in order to use. I’d imagine this is not a small deal. With the aim of expanding outside of the initial participants, to Africa’s Pan-African Payment and Settlement tiered investment System, paying into a system that is not opensource just seems sketch.

There’s quite a bit of info in the links, not sure if I missed the main thrust, but that’s my TLDR.

0 sats \ 2 replies \ @Solomonsatoshi 9 Nov

China is building the base protocol/s for its alternative to SWIFT which will start with BRICS nations but will not be limited to them. Any nation that wants an alternative to SWIFT will have the option of Chinese payments protocols. This is already operational in terms of Russia, Iran and N.Korea who all already rely upon Chinese trade payments channels.

2 sats \ 1 reply \ @xz 9 Nov

Well, I guess there's the upshot.

Protocols > platforms.

Closed-source systems are still trusted systems though. Participation would suggest a joint vested interest in development of the system, i.e the protocol. Not just participation in a protocol that is permission-based.

There would have to be some rules to stop central banks flooding the system by inflating their money supply. Who will make the rules of the protocol, where is the consensus?

Interesting read.

0 sats \ 0 replies \ @Solomonsatoshi 9 Nov

It looks like it will be a system that facilitates trade payments using digital representations of the various nations currencies. Based on the Chinese CBDC as the mBridge program is. If a nation inflates the supply of its currency then it loses value compared to the other currencies- just as happens if you are operating within SWIFT. China will control the protocol as it developed the e-Yuan protocol upon which its being built. This is the tertiary layer of the Belt and Road model of empire China is building.