BRICS countries may present instruments for mutual settlements at summit in Kazan
The key principles in designing the new financial system are decentralization of international interaction and the use of digital technologies, Andrey Mikhailishin said
From TASS, Russian News Agency
source - https://tass.com/economy/1839865
MOSCOW, September 6. /TASS/. The BRICS countries are developing a wide range of instruments for creating an inclusive international financial system, some of them may be announced this autumn at the summit in Kazan, Andrey Mikhailishin, the head of the task force on financial services of the BRICS Business Council, told TASS.
"We are preparing a presentation of some solutions for the autumn BRICS summit, in the retail and b2b segments," Mikhailishin said on the sidelines of the forum "Digital Finance: New Economic Reality."
He also confirmed that a list of projects has been determined, which a common unit of account (Unit), a platform for international settlements in BRICS digital currencies (Bridge), a payment system (Pay), a settlement depository (Clear), an insurance system (Insurance), and a BRICS rating alliance.
The key principles in designing the new financial system are decentralization of international interaction and the use of digital technologies. In particular, Mikhailishin noted that BRICS Clear will "use blockchain to record securities and exchange them."
The design of a common unit of account uses the experience of the transferable ruble of the countries of Comecon (The Council for Mutual Economic Assistance of the countries of the former Soviet bloc - TASS).
"When we talk about a counterpart of the transferable ruble, we mean that settlements but not the storage of balances are made in national currencies," he explained.
The Unit project assumes that the value of the common unit of account is pegged by 40% to the value of gold, and by the remaining 60% to a basket of national currencies of the BRICS countries. This approach can make it a convenient and universal instrument, Mikhailishin said: "When you have a unit of account that can be converted into any national currency, it is more convenient for you to hold it, since it is a more liquid instrument," he said.
A common unit of account would solve the problem of exchange rate volatility that occurs when cash balances accumulate from settlements in national currencies.
"If everything is done in national currencies, then as a result we are left with many billions of rupees, Egyptian pounds, and we do not know what to do with it," Mikhailishin added.
The BRICS summit in Kazan is scheduled for October 22 through 24.
Unit Whitepaper
There is a UNIT whitepaper. The UNIT whitepaper describes the concept and framework for a decentralized monetary ecosystem called UNIT. Here are some key points about the UNIT whitepaper:
The UNIT whitepaper introduces an approach to creating "apolitical money" using a fractal monetary ecosystem.
It outlines the basic framework for UNIT, which is described as a currency within a decentralized monetary fractal ecosystem.
Key Elements
UNIT Nodes: The core element is UNIT nodes, which are online entities linked to physical hubs containing a proportional basket of assets including gold and local currencies.
Token Minting: New UNIT tokens can be minted as needed by delivering the underlying components to a UNIT node.
Transparent Pricing: The composition and pricing of each component in the basket is transparent and measured in gold.
Ecosystem Expansion: New UNIT nodes can be added by consensus among existing nodes, allowing the ecosystem to expand.
Benefits and Uses
The whitepaper outlines several benefits and uses for UNIT tokens:
Price discovery for trade, services and capital transactions
Payments via various systems, including blockchain-based options
Node validation protocol
Ecosystem governance through voting
Key Requirements
The whitepaper also specifies some key conditions for the sustainability of the UNIT ecosystem:
Transparent price discovery mechanism for basket components
Distributed secure gold storage
UNIT nodes acting as custodians
The UNIT whitepaper appears to be a detailed technical document outlining the concept, structure, and implementation of this proposed monetary system. It's available for review and likely provides more in-depth information on the UNIT framework and its potential applications.
Citations:
https://wp.unitfoundation.org