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BRICS in talks to create own cryptocurrency in another blow to US Dollar

BRICS in talks to create own cryptocurrency in another blow to US Dollar

The Head of the Russian Direct Investment Fund (RDIF) Kirill Dmitriev has stated that the BRICS may opt to create their own cryptocurrency for the purposes of global commerce.

A cryptocurrency is a digitally based means of exchange wherein the value of said currency is not determined by a central-bank. Most cryptocurrencies can be converted into state-issued currencies (Dollars, Euros, Yuan, etc.) through various foreign exchange services.

Currently, one of the biggest issues facing crypocurrency development is the fact that they are not backed up by any central bank. However, many also see this apparent disadvantage as a possible opportunity, particularly where unilateral Dollar based sanctions are concerned.

While the US Dollar remains the most popular global trading and reserve currency, this is rapidly changing. A BRICS backed cryptocurrency may be both the proverbial ‘Dollar buster’ as well as a ‘sanctions buster’.

In May of this year, China and Russia agreed to begin a process of trade in local currencies. Turkey and Iran have also begun steps to break away from the Dollar.

READ MORE: 5 ways Russia and China are deepening their cooperation

Even more recently, China announced that is plans to allow for oil trading in Yuan which will be convertible to gold at the Shanghai and Hong Kong international gold exchanges.

The creation of a BRICS cryptocurrency could potentially retain the flexibility of current cryptocurrencies with the additional benefit of being backed by the leaders of a large economic-trading union which would give traders confidence in such a currency that many existing cryptos such as Bitcoin are lacking.

It is not certain what the exchange rate of a would-be BRICSCoin would be, but there is every chance that it could be based on a derivative of what is known as Special drawing rights (XDR) a current means of exchange which pools the values of the US Dollar, British Pound, Japanese Yen and the Euro.

A possible variation which would set the initial exchange rates of a BRICSCoin could be a combination of a gold backed Chinese Yuan, Russian Rouble, Indian Rupee, South African Rand and Brazilian Real.

This could create an effective hybrid currency that could easy trade and make exchange rates between BRICS states and their partnership more equitable. There is also a potential for such a currency to be used as a means of everyday exchange among businesses and individuals in growing and emerging markets that seek to partner with the BRICS in the so-called BRICS Plus format.

While cryptocurrencies are relatively easy to create, they are more difficult to promote as a widely accepted means of exchange. However, with the prominent economies of the BRICS backing such a currency, this problem could be easily bypassed, as a semi-central regulatory body would likely be the logical outgrowth of such an initiative.

As Kirill Dmitriev stated during the BRICS summit in Xiamen China,

“Another topic discussed by the financial committee was cryptocurrencies. The creation of BRICS’ cryptocurrency as an alternative to other payment tools might also be discussed.

…cryptocurencies are also being discussed as one of the possible options for financial settlement. For particular payments it might be quite relevant and serve as a good alternative to the dollar or any other currency.

We estimate that the mutual investments of the BRICS countries might see an increase by 3-4 times due to such instruments as BRICS [Development] Bank”.

See Also

READ MORE: Russia seeks to break free of Dollar dependence

In many ways, the most powerful asset the US has internationally is the Dollar. If the effective hegemony of the Dollar is broken, it could be a substantial opportunity for emerging markets to assert their monetary and consequentially fiscal independence.

Russia is already taking its own steps towards developing its own cryptocurrency. According to Communications Minister Nikolay Nikiforov, a Russian cryptocurrency will be designed to work with existing Russian technologies rather than the foreign technologies which form the basis of the Bitcorn blockchain.

Nikiforov stated,

“Bitcoin and Etherium are cryptocurrencies developed on the basis of foreign cryptography. Russia has its own cryptography school. I think that we are absolutely capable of creating a cryptographic unit, a tool, based on the blockchain technology, and work out concrete regulations to set the framework for the operations”.

Such a currency could receive an official sanction from the Russian Central Bank. This technology could be used to help develop the BRICS wide crypto which has been widely discussed at the current summit.

The BRICS summit in Xiamen continues through the 5th of September.

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Abi Shah
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Abi Shah

The creation of the hegemonic and evil petro dollar needs to be eradicated because this dominance has put the entire globe under their rule and if it was not for Russia and China leading the way towards are more fairer system then I certainly believe Israel would and may and will bring about their new world order by stealing the wealth of other nations as it has been doing for decades such as greece ireland and many of the european nations. I for one would gladly shy away from the Dollar and rebuild a system that provides some kind of… Read more »

Jets
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Jets

Brilliant in every way and every word (especially the last sentence).

TEN thumbs up :-))

Ricardo Silva
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Ricardo Silva

Israel is a great country, as they’re proving now by getting extremely upset at Netanyahu because he wasted some money. They’re even talking about removing him from the job. Wow!

Oddly enough, I never saw this many Israelis getting upset when Netanyahu Mass Murdered innocent civilians. Nor they get upset when they are asked to intentionally murder children and pregnant women. Israelis have no problems committing atrocities. They even celebrate it. Disgusting savages.

bcguy
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bcguy

Great points. i know Russia did kick the rotchild money launderers out and he also paid off the IMF. This new currency backed by a development bank seems like a really good investment.

Abi Shah
Guest
Abi Shah

Thank you sir i truly believe that your certainly a petson of integrity because you r eyes are open to a much more sinister agenda by we know who>>Israeli zionists likud party and the entire puppet us congress.
What we should be appaulled at is when a new president of the united states is inaugurated the 1st mandate he has to sign is to pledge his undeniable allegiances to the zionist state of Israel..so plesse tell me what this really encompasses?

Wayne Blow
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Wayne Blow

I knew there is a very sinister plot at play here “(BRICS)” the big threat to USA, UK, Israel!!!! They need a big war like North Korea to divert attention!!! Too effing bad for the 2 Koreas, but then pawns are just pawns, eh?

Trauma2000
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Trauma2000

I keep reading up on articles that talk about ‘replacing the U.$. hegemonic dollar… blah blah” but I’m yet to read anything significant about the “framework” that is being developed to ‘replace the Reserve Bank’ framework that is controlled by the Rothschilds. Only when the ‘Reserve Bank’ framework ceases to be necessary, will countries be free to regain control their finances. It’s the ‘Reserve Bank Framework’ that keeps entire countries subservient to Rothschild controlled financial markets; not the presence of money per se. And what makes anyone think that the Rothschilds, and their incredible wealth, will not corner the CryptoCurreny… Read more »

Gareth Barnard
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Gareth Barnard

Firstly there are no reserve banks in which any Rothschild has any stake. That’s fake news. Controlling monetary supply is also essential to maintaining it’s value and there is a free market in international currency exchanges.

Ricardo Silva
Guest
Ricardo Silva

Well, if that’s fake news, then… who the hell do all the countries from all over the world … own money to…? To the Aliens? To no one? Then we might as well stop paying.

You know very well that Zionists own and control the Federal Reserve. But why do you deny it? Are you hoping they’ll give you a stake in it, perhaps? Keep dreaming, little marionette.

bluewater
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bluewater

a heads up …from an insider source…..Bitcoin was created by THE NSA and it is owned by ROTHSCHILD IT IS A SCAM and if you can not hold it in your hand..it is worthless..When the INTERNET GOES DOWN..YOU ARE SCREWED and BY LAW…THE NSA can take it away from you ..IT IS LEGAL FOR THEM TO DO IT!!!!! from another very good source…..YOU will not have a FINANCIAL RESET till the CABAL is taken out and they will …then you will have a new currency to use that will be backed up by GOLD.. THE ELITES..JPMORGAN,ROTHSCHILDS have been manipulating GOLD… Read more »

Ricardo Silva
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Ricardo Silva

Stop injecting drugs… they’re bad for you.

jenuty
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jenuty

no sense

Great Expectations
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Great Expectations

‘It is not certain what the exchange rate of a would-be BRICSCoin would be, but there is every chance that it could be based on a derivative of what is known as Special drawing rights (XDR) a current means of exchange which pools the values of the US Dollar, British Pound, Japanese Yen and the Euro.’ NO chance whatsoever, I would have thought. The SDR is a tool created by the IMF so, while a SDR backed BRICSCoin might bypass central banks, it falls straight under the influence of the IMF, which ‘controls’ the central banks. ‘A possible variation which… Read more »

Gonzogal
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Great Expectations
Guest
Great Expectations

Thanks, I’ll take a look. Max Keiser on RT’s Keiser Report has done a full 180 degree turn on gold and bitcoin in the last year or so. He was promoting bitcoin again today and trashing Jim Rickards for focusing on gold. But Max never explained why he changed his mind so radically. Interesting.

Gonzogal
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Gonzogal

You are welcome and I hope it answers some of your questions. I must say that I personally am not 100% clear of all the implications, but I can only liken it to the US Fed “creating money out of nothing” and seeing the similarities.

Great Expectations
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Great Expectations

I agree.

Gonzogal
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Gonzogal
Great Expectations
Guest
Great Expectations

Yep, thanks for that last one – just read it and it confirms what I thought and what Peter Schiff says in his podcast. Bitcoin does not pass the test for a currency and it is an as like anything else bought on the stock exchange. I haven’t had a chance to read all the zero hedges you linked yet but I’ve read similar on there before and I note in one of the ones you sent, China says it’s not a currency (was that the one above? Can’t remember, my grandson doesn’t like me concentrating on anything but him… Read more »

Gonzogal
Guest
Gonzogal

I saw that one last week.

What is interesting from the BRICS this year is the idea being solidified re a crypto currency for the BRICS nations and their partners to be able to circumvent sanctions etc! I imagine that that currency would possibly be backed by gold to solidify its worth.

Here is some info on it…it should be interesting to see it develop.
http://www.mintpressnews.com/blow-us-dollar-brics-considers-cryptocurrency/231571/
http://voiceofrussia.com/2013_10_09/What-will-happen-to-global-economy-if-BRICS-announce-launch-of-new-currency-Bricso-1897/

Great Expectations
Guest
Great Expectations

Yes, a basket of currencies (their own), along the lines of the IMF SDR idea; backed by gold, which Russia and China have been reputedly accumulating in large quantities, would make sense. India isn’t short of gold either. After the way Russia, China and Brazil have been treated by the international community (I mean the US elite), one can only wish them every economic success. I am still intrigued, though, how Brazil’s Michel Temer fits into the BRICS set up; Dilma Rousseff was impeached and dispatched politically, largely by Temer, who is Washington’s puppet. I can’t imagine the other BRICS… Read more »

Gonzogal
Guest
Gonzogal

I read Temer is up for impeachment too!
http://www.zerohedge.com/news/2016-11-25/brazil-president-temer-threatened-impeachment-after-new-corruption-scandal-emerges
On BRICS, he seems to be less vocal during the meetings but so far as I have heard he is on board with BRICS goals. This despite the US coup in Brazil it doesnt seem that there is some permanent damage done to the group. Although who knows for sure.

If there is problems on the horizon I think it might come from India, as it seems to be indecisive as to its commitment to BRICS vs the US.

Great Expectations
Guest
Great Expectations

Yes, India doesn’t seem to see eye to eye with China.

I thought that was Temer’s daughter standing with him.

With Brazil sliding all over the place, India playing all sides for its own gain and South Africa, which was a late arrival, it would seem that Russia and China are doing all the heavy lifting. Good reason to bring in some of the other Asian countries, I suppose.

Gonzogal
Guest
Gonzogal

Re South Africa, the US is trying to pull a “regime change” or else there.

As regards bringing in other countries, that is why they set up the BRICS+ and BRICS++. They are certainly not keeping anyone out that wants to work with them! It seems that even Germany is interested!
http://valdaiclub.com/a/highlights/re-thinking-the-brics/
https://sputniknews.com/politics/201703221051849196-brics-enlargement-plan/

India is upset because of Pakistan’s being part of the BRICS+
https://sputniknews.com/world/201703111051472250-china-pakistan-brics/

I dont know if you have seen this article re BRICS 2017 by Pepe Escobar, if not its a good read as to what turmoil seems to be going on.
http://www.atimes.com/article/odds-brics-nations-get-act-together/

Gonzogal
Guest
Gonzogal

Just read this article…SUPER interesting re India and Brazil as regards BRICS. It also mentions the other countries showing interest in BRICS http://www.atimes.com/article/real-brics-bombshell/

Gonzogal
Guest
Gonzogal

I just read this on the US’ SEC and the IMF possibly regulating (taking over) bitcoin. Super interesting and will be interested to see how the crypto currency of BRICS will be set up differently.
http://www.zerohedge.com/news/2017-09-05/global-elites-secret-plan-cryptocurrencies
http://www.zerohedge.com a;ways has a lot of articles on bitcoin (plus a lot of other interesting news)

dago dingo
Guest
dago dingo

Like a rabid dog at the end of its life, it lashes out & uses any means at it’s disposal to hurt others in order to survive, this is what we see happening before our very eyes. America is on the verge of collapse & it will use any means at it’s disposal to retain the empire. Hence all the Russo-phobia & China bagging. I say the death of this pariah, America cannot come soon enough!!! The world is sick to death of the wars it wages on sovereign soils, responsible for the deaths of millions of innocents in order… Read more »

Gareth Barnard
Guest
Gareth Barnard

Yes Dago. It’s time people like Kim Jong-ug take there rightful place on the stage of world power

dago dingo
Guest
dago dingo

Oh & the mad men running The Empire of Chaos are better???

Ricardo Silva
Guest
Ricardo Silva

Yep… Divide & Conquer is the plan. The Zionists have been destroying the USA by the inside since 1776… and the endgame is very near. The US will probably end up breaking up into a variety of different countries. United we stand, divided we fall.

Dennis Morrisseau
Guest

DO IT!

Popart 2015
Guest
Popart 2015

Cryptocurrency sounds like avoiding the problem! Why crypto if you can do the real deal?

Kubrickian
Guest
Kubrickian

That would be the currency to buy but like the ones before it you wouldn’t be able to buy it until the currency was inflated beyond what an average investor could afford.

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