This is the structure for a substantial RV of globally weaker currencies against the US Dollar, Euro, Yen and other major Fiat Debt System currencies.
The long-term stability of the BRICS Alliance’s financial vision hinges on the successful implementation of the Common Trade Currency Unit (CTCU).
Any currency backed by and a part of the CTCU infrastructure would essentially RV upwards against the Dollar and other major fiat debt currencies.
This innovative currency aims to provide a stable, reliable alternative to the US Dollar, backed by tangible assets including gold.
The CTCU is designed to enhance trade efficiency, foster economic stability, and reduce dependency on traditional fiat currencies.
Also Read: Realizing Humanity’s Financial Freedom: The Rise of a New Gold-Based Currency is Underway to learn about the path for this new gold-based currency to succeed as a powerful alternative the US Dollar and the Global Fiat Currency Debt System.
Understanding the CTCU
The CTCU operates within a decentralized ecosystem facilitated by a blockchain platform. Each authorized node within this ecosystem can issue settlement and payment units denominated in CTCUs. These units serve as a medium of exchange, unit of account, and store of value for cross-border transactions among BRICS nations.
The CTCU is pegged to a basket of assets to ensure stability and trust. Specifically, it is anchored to 1 gram of gold, with the remaining value equally divided between two currencies from BRICS countries.
This hybrid backing provides a robust foundation for the CTCU, mitigating the volatility inflationary devaluation typically associated with fiat currencies.
Example: Brazil’s Economic Transformation with the CTCU
Consider Brazil, a key member of the BRICS Alliance. By adopting the CTCU, Brazil can streamline its international trade processes and stabilize its economy.
Here’s how the CTCU can provide substantial value to Brazil and RV their currency:
- Enhanced Trade Efficiency:
Brazil imports a significant amount of goods from China. Using the CTCU, Brazilian importers can bypass the complexities and costs associated with currency conversion and fluctuating exchange rates. The CTCU provides a stable and predictable medium of exchange, reducing transaction costs and increasing trade efficiency. - Stable Value Retention:
The CTCU’s value, pegged to gold and a basket of BRICS currencies, offers greater stability compared to the Brazilian Real, which can be subject to inflation and economic volatility. Brazilian businesses and individuals can hold CTCUs as a more reliable store of value, protecting their wealth from domestic economic fluctuations. - Improved Investment Climate:
The introduction of a CTCU-based bond market can attract foreign investment into Brazil. Investors seeking stable returns can purchase CTCU-denominated bonds, providing Brazil with an influx of capital for infrastructure and development projects. This increased investment can spur economic growth and development. - Facilitation of Sanctioned Trade:
In scenarios where Brazilian companies face trade restrictions with certain countries, the CTCU offers a viable alternative. Transactions conducted in CTCUs can circumvent traditional banking systems that are subject to international sanctions, allowing Brazil to maintain vital trade relationships without geopolitical constraints.
Any currency backed by and a part of the CTCU infrastructure would essentially RV upwards against the Dollar and other major fiat debt currencies.
Operational Mechanism
To utilize the CTCU, Brazilian companies would convert their local currency (Real) into CTCUs through authorized financial institutions. These CTCUs can then be used to conduct trade with other BRICS nations. For example, a Brazilian company importing electronics from China would pay the Chinese exporter in CTCUs. The Chinese exporter can then use the CTCUs to purchase raw materials from South Africa or invest in Russian energy projects, creating a seamless and efficient trade network.
Trust and Transparency
The decentralized nature of the CTCU ecosystem, supported by blockchain technology, ensures transparency and security. Each transaction is recorded on an immutable ledger, providing a clear and auditable trail of all CTCU movements. This transparency builds trust among BRICS nations and global investors, reinforcing the credibility and stability of the CTCU.
The Bottom Line
The CTCU represents a transformative leap towards a more stable and equitable global financial system. By addressing key economic challenges and providing a reliable alternative to fiat currencies, the CTCU can significantly enhance the long-term financial stability of BRICS nations. As Brazil’s example illustrates, the CTCU has the potential to revolutionize trade, investment, and economic growth within the BRICS Alliance, heralding a new era of financial freedom and prosperity.
Contributing article: https://www.finmarket.ru/main/article/6194585
