UAE: RAKBANK executes its first central bank digital currency cross-border transaction. Gold Backed UNIT LIFTOFF
every 1% market share of BRICS export trade obtained by the UNIT, it's estimated that approximately 250 tonnes of gold, along with 385 tonnes of gold worth of participating BRICS currencies on reserve
The National Bank of Ras Al Khaimah (RAKBANK) has achieved a significant milestone by successfully executing its first international remittance using China's digital yuan (eCNY) in exchange for the UAE's digital dirham. This transaction marks RAKBANK as one of the pioneering banks in the United Arab Emirates to participate in such a cross-border digital currency exchange.
The successful transaction is part of Project mBridge, an initiative launched in 2021 to address inefficiencies in cross-border payments. Project mBridge is a collaborative effort involving the Central Bank of the United Arab Emirates (CBUAE), the BIS Innovation Hub, the Bank of Thailand, the Digital Currency Institute of the People's Bank of China, and the Hong Kong Monetary Authority.
At the core of Project mBridge is a multi-central bank digital currency platform built on distributed ledger technology (DLT). This platform enables participating central and commercial banks to conduct real-time, peer-to-peer cross-border payments and foreign exchange transactions. The mBridge ledger, a new blockchain, supports these secure and instantaneous transactions.
RAKBANK's CEO, Raheel Ahmed, emphasized that this achievement showcases the bank's advanced digital capabilities and strengthens its position as a leading retail and commercial bank in the UAE. The successful transfer of eCNY to RAKBANK's correspondent in China represents a significant advancement in international payments, as it's one of the first UAE-led foreign currency transfers executed in local currencies without involving a third currency or conventional payment rails.
Vikas Suri, co-head of Wholesale Banking Group at RAKBANK, highlighted the transformative nature of this transaction. He noted that it paves the way for instant blockchain-based CBDC exchanges with payment versus payment, fundamentally altering the approach to international payments. RAKBANK plans to leverage mBridge to support the China-UAE business corridor, aiming to reduce costs and improve the speed of remittances for its clients.
This development represents a significant step forward in the global financial landscape, demonstrating the potential of central bank digital currencies (CBDCs) to revolutionize cross-border payments by offering real-time transactions with enhanced transparency and reduced costs
Backed by Gold
The UNIT currency, which is being considered by BRICS countries, is designed to be partially backed by gold, with 40% of its value anchored in the precious metal. This gold backing is intended to provide stability and credibility to the new currency.
The remaining 60% of the UNIT's value would be composed of participating BRICS currencies, all of which would be convertible into gold. This structure aims to create a balance between the stability offered by gold and the flexibility provided by fiat currencies.
The gold-backing mechanism of the UNIT is designed to support its adoption in global commerce.
For every 1% market share of BRICS export trade obtained by the UNIT, it's estimated that approximately 250 tonnes of gold, along with 385 tonnes of gold worth of participating BRICS currencies, would need to be put on reserve at UNIT nodes.
This significant gold requirement will skyrocket demand for the precious metal, benefiting gold-producing nations and mining companies.
table using 635 tonnes of gold converted into troy ounces
“Backed by gold”. Sure. Just until the participating countries figure out how to quietly siphon it off so the 1’s and 0’s on the screen reflect their true value of nothing.
Who believes that any government, in the long run, is actually going to allow the people to have a currency that holds any amount of actual inherent value?
As for blockchain, give me a break! The leadership needs ways by which to do what they do outside of the public eye: take bribes; pay off mercenaries, human traffickers and prostitutes, and fund all sorts of shadow organizations like arms dealers without public attention. Blockchain is unfit for these purposes in so many ways. My guess is that a booming global market in actual gold, in place of paper, will start springing up to serve the needs of the elites while the peasants accept quatloos to pay for their daily allotment of gruel.
Look forward 30 or 40 years from now, staring out from your “spacious” 300 square foot cinderblock human battery cage apartment in your “smart” city, and compare the spare digital prison you live in, funded by electronic nothing, while the elites are living in palatial estates funded by the gold that was supposed to back “your” currency. And wonder how that happened.
Come on, people! If you don’t hold it, you don’t own it. If it belongs to the central bank, you don’t own it. And if it’s not DIRECTLY convertible to gold upon the bearer’s demand, it’s not worth the electrons and the screen it will be shown on. Digital currency “backed” by gold plus “flexible” local currencies backed by nothing, is still nothing. In fact, it’s worse because it’s now a vast control mechanism that takes away all the people’s privacy and gives nothing but even bigger lies in return. Such a deal!
Protect yourselves. Purchase real gold for your own wallet while you can. “They” want gold for themselves, and you to believe they’re keeping it safe and using it for your benefit. Why shouldn’t you want (and deserve) to follow their example, and exercise the right to own and spend gold for yourself?