BRICS to launch independent financial system
BRICS to launch independent financial system
(VOVWORLD) - Countries of the BRICS economic bloc are currently working on the launch of a financial system that will be independent of the dominance of third parties, according to Russian Ambassador to China Igor Morgulov.
By financial system they still mean a swift/Cips/sfms/spfs alternative?
They mean a supranational currency aimed at transforming international trade settlement that sounds very similar to the idea of Bancor that Keynes proposed. The key idea is to establish a common unit of account and clearing system for international transactions. This would prevent the dominance of national currencies in international trade, promoting a more equitable financial system that's not dominated by the currency of any single country.
This concept would tackle persistent trade imbalances by incentivizing countries to maintain balanced trade, as excessive surpluses or deficits would incur penalties. The idea also has potential to enhance financial stability by countering speculative capital flows that often destabilized exchange rates and caused financial crises.
Edit: oh no I mentioned China here come the tankies
They've been saying this for years, the problem is that none of them trust each other's currencies or banking systems enough to do it. Nobody trusts China's economic stats. They really, really want to get off the dollar. They meet like every year and try to figure out how. But they can't figure out how because of that lack of trust. Meanwhile, Bitcoin (with lightning):
- trustlessly sends a transaction across the globe in under a second for pennies in fees. You don't have to worry if "your bank trusts their bank", Bitcoin will secure the transaction.
- Is immune from influence or corruption. China or whoever can't make Bitcoin print extra coins for them, spend money that they don't have the key for, or otherwise do anything it isn't designed to do. The protocol is enforced by the network.
- All you need is a cell phone with a halfway reliable internet connection, no need for complex banking infrastructure. No single building with a bunch of money stored in it. No paying extra for your liquidity because your region is "risky". This is a big deal for poor countries.
- It's been doing this global transaction role for 15 years without a single bank holiday, a single hour of downtime, or a single hack. It. Just. Works.
- If your population has learned not to trust banks, for example through political instability and coups, this can help them get back into the "formal economy" as you can say "see, our corrupt government doesn't run this money, so you can trust it more. The 1 BTC you earn today will still be 1 BTC in 5 years".
- For <1% of global electricity usage, mostly from renewables since off-peak renewable generation is the cheapest energy around. It helps incentivize adding more renewables to the grid by ensuring there is always a buyer for any surplus supply. And it helps keeps rates lot for regular ratepayers through that same mechanism. Moving value around costs energy and human time, we just don't see headlines like "WESTERN UNION AGAIN CONSUMING TERAWATTS A DAY OF ELECTRICITY WE'RE ALL DOOMED" because there's nothing novel about remittance services using tons of energy and making their customers pay exorbitant fees.
Smaller countries like Ecuador are using this technology to bring Bitcoin to millions of people who don't have access to (or don't trust) banking infrastructure. Smaller countries can now participate in the global economy without using the USD and retain more of their sovereignty in the process. They have a plan B. And they don't have to run their own central bank or having stable enough political/legal ifrastructure for a banking system. They just need old android phones and 3G connections.
Nobody trusts China’s economic stats.
Except the IMF, World Bank, Moody, Standard and Poor, etc.
Meanwhile, Bitcoin
lol
Except the IMF, World Bank, Moody, Standard and Poor, etc.
They don't trust it, they just have no other figures to work off. China has a long history of faking numbers or suddenly stopping the publishing of numbers when it can make the party look bad. https://www.bloomberg.com/news/articles/2023-08-16/china-is-hiding-more-and-more-data-from-the-rest-of-the-world
lol
Ok, be mad. A 15 year trend of growth on average no matter how you measure it: market cap, number of nodes, transaction volume, transaction capacity, etc. If you have thought Bitcoin was a scam or a bubble about to burst or whatever, you've been wrong 15 years in a row, maybe it's worth reconsidering. Because it's not just crypto bros using or investing in it now, it's national treasures, it's big banks and finance. But you know, on year 16 you'll finally be proven correct, right?
Doesn't bitcoins blockchain use some sort of consensus algorithm, so if one party has more than 50% of the compute power they control everything?
Yes, so does a democracy. Answered here in another comment on this thread https://lemmy.ml/post/17799179/12217017
🤣 Yeah, good luck with that.
Not sure what this comment means, BRICS has been rising in membership and stability.
Westerners thinking the rest of the world can't possibly get on without them will never stop being hilarious.
Look at Russia's economic growth in spite of the sanctions.
There's a world economy outside US control and it is only growing. Where do you think the inflation is coming from?
That's the thing about a war time economy, you produce one tank, and BOOM you've added $3.5MM to your GDP. A single SU-35? About 16MM added to GDP.
You can't eat tanks and jets though, the labor and resources used to maintain a war footing are vast, and must be poached from other areas of the economy. The longer you maintain this posture, the more dramatic the contraction.
Gazprom posted a loss for the first time in decades. They sell one of the most profitable substances ever discovered by man and they still couldn't turn a profit.. despite how little the sanctions are impacting them, no less!
Russia is in for a harsh wakeup when the Ukrainian war ends (or in 2026 if the war is still ongoing IMO). Their economy is "looking good" right now only because it has been switched to a war economy, and the Kremlin injects tons of cash in it, but lots of it isn't useful for the russians, it's just getting destroyed in the war.
Also the ruble is close to a dead currency, nobody wants to trade in it any more.
So that if (hopefully not when) China invades Taiwan, they won't get hit with sanctions as bad as Russia did.
Omfg the brain rot it takes to write this.
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China has repeatedly stated that they have zero intention of invading their own island and killing their own countrymen. It's only Americans that keep repeating this lie that China wants to invade Taiwan.
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Russia has been placed under the most comprehensive sanctions in moderns history, including the USA seizing assets in violation of established sanction rules, and Russia's economy is growing in both absolute and globay relative terms, while Russia's military is larger than before the SMO started and still out producing the entire Western MIC combined.
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Meanwhile, the USA has attempted to engage in economic warfare with China and has lost every single time. China continues to dominate the top ~50 hi tech research areas, continues to outpace every Western nation on all meaningful economic growth rates include financial, purchasing power, infrastructure development, etc.
There is no world outside of the USA propaganda cesspool where your comment even remotely matches reality.
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Thats their goal, they want insulated within their own economic system.