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BRICS Unveil Prototype Gold-Backed Trade Currency ‘Unit’

BRICS nations advance their gold-backed ‘Unit’ currency pilot, now valuing issued Units slightly below the initial 1g gold peg.

Summary

On December 8, BRICS showcased a working prototype of the gold-backed ‘Unit’ trade currency, backed 40% by physical gold and 60% by BRICS member currencies. The International Research Institute for Advanced Systems (IRIAS) had issued 100 Units on October 31, initially pegged to 1 gram of gold; as of the latest update, each Unit is valued at 0.9823 grams of gold. This development marks progress in the bloc’s exploration of alternative trade settlement mechanisms.

Terms & Concepts
  • Gold-backed currency: A currency whose value is directly linked to a specific quantity of physical gold.
  • BRICS: An economic bloc consisting of Brazil, Russia, India, China, and South Africa.
  • Pegging: Fixing a currency’s value to a reference asset, such as gold, to maintain stability.