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New BRICS currency: what if tokenization was used?

During the annual summit meeting held in South Africa at the end of August 2023, the intention of the member countries to create a new Brics currency for commercial transactions between them was confirmed. This decision may be related to what we call the tokenization of everything.

The currency that has been called BricsCoin would not be a replacement for fiat currencies but rather a facilitator of trade as countries do not need to buy dollars for commercial operations between them.

Therefore, it is a big step towards commercial autonomy and highlights the geopolitical importance of the BRICS, especially at a time when six more nations are joining the group: Argentina, Egypt, Ethiopia, Iran, the United Arab Emirates and Saudi Arabia.

The strengthening of the Asian, African and South American continents and the advent of the single trading currency increase the bloc’s protagonism as a global political force in discussions with the G7.

BLOCKBR, a company that develops tokenization infrastructure, will talk about the BricsCoin project and how tokenization will be present!

BRICS: WHAT IS ITS IMPORTANCE IN NUMBERS

BRICS was created in 2009 as BRIC with the meeting of Brazil, Russia, India and China, with Africa joining in 2010, creating the name we know today and the entry of six more countries in 2023.

In essence, BRICS is not an economic bloc but a union of geopolitical forces to:

  • Discuss a wide range of issues – trade, security, sustainable development and other topics of mutual interest;
  • Exert greater political influence, through the group, in global discussions, decentralizing the decision-making axis that is very concentrated in developed countries;
  • Promote greater economic, political, social and cultural cooperation between developing countries.

The BRICS numbers are impressive and show the strength of the group and how useful the single currency will be for future projects.

  • 36% of world GDP;
  • 72% shallow earth mineral production;
  • 42% of oil reserves;
  • 75% of manganese production;
  • 50% of graphite production;
  • 28% of nickel production;
  • 13% of lithium production in 2030 (with the entry of Argentina);
  • 46% of the world population.

The great challenge of the expanded BRICS is the countless economic and cultural visions of the partners, which in President Lula’s opinion can demonstrate a diversity that strengthens the fight for a new order that accommodates the economic, geographic and political plurality of the 21st century.

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WHAT ARE THE REASONS BEHIND THE CREATION OF THE NEW BRICS CURRENCY

  • Seek autonomy and detach from the dollar in operations between BRICS member countries;
  • Obtain greater economic independence with the shared currency in Brics;
  • Open new horizons in the international financial sphere with anchoring in gold;
  • Reduce operational costs of transactions involving countries;
  • Calibrate product prices with partners within the Brics area, without the risk of exchange rate impact and loss of value;
  • Ensure more predictability in negotiations between Brics companies;
  • Eliminate the United States’ dependence and influence on the economy of large global players.

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TOKENIZATION AS A BRICSCOIN OPERATION RESOURCE

Within the BricsCoin conceptual model that is currently designed, the tokenization of assets will play a fundamental role, reinforcing the growing role of crypto assets in global business.

BricsCoin’s operation will be backed by gold and each unit of the central currency will have the value of a specific amount of the metal, which guarantees the intrinsic value of BricsCoin backed by gold reserves in member countries.

Tokens and bonds will be issued to represent the value of these gold reserves and used for commercial transactions between BRICS countries with a series of benefits from blockchain technology.

MORE PROFITABILITY WITH COST REDUCTION

Commercial operations can be carried out peer-to-peer, directly between the parties involved with a substantial reduction in intermediaries and costs, mainly those related to exchange, which will help to improve the profitability of the transaction.

WHAT ARE THE REASONS BEHIND THE CREATION OF THE NEW BRICS CURRENCY

TOTAL SECURITY AND TRANSPARENCY

The token ecosystem uses the highest levels of data and operations security, through the consensus protocol, in which all points in the blockchain network must approve the transaction, preventing fraud and virtual crimes with data in international business.

HIGH AVAILABILITY TO NEGOTIATE

Blockchain networks work uninterruptedly and this will greatly facilitate the sequential fulfillment of clauses between the parties to a negotiation with more agility and reducing the impact of time zones and local holidays.

Tokenization can provide the best international business environment backed by gold and independence from the dollar for foreign exchange operations.

On the other hand, BricsCoin will depend on mutual trust between Brics member nations and the convertibility of tokens into physical gold.

DREX: REAL DIGITAL IS A MODEL FOR BRICSCOIN DIGITAL!

Brazil is establishing itself as one of the protagonists of a tokenized economy that it is forming and DREX is the most significant initiative, as it is led by the Central Bank, the regulatory body of the Brazilian monetary and financial systems.

Monetary tokenization is a way of including a significant portion of people who currently do not have access to banking services, due to the complexity or costs involved.

The expectation is that the costs of the banking system and banks will be reduced and this will enhance the profitability of trade in goods and services and the profitability of financial products.

Certainly, it will be an inescapable step for the BRICS to make business between the countries of this community even more agile and efficient.

TOKENIZE YOUR ASSETS WITH BLOCKBR!

Tokenization is a reality that is becoming present in all segments and business models, it is not something so innovative that it should still be seen with suspicion. Companies and individuals are currently monetizing tokens.

Recent actions by BACEN and CVM signal that tokenization is legal and the digital real will be a great divisor to increase the credibility of technology for those who want to invest in digital assets.

Offering your business token is simpler than you might think. Do you want to see the competition come out ahead?

Come and talk to BLOCKBR.

We have the best token offering strategy on the market!

INVEST AND EARN MORE WITH TOKENS ON BLOCKBR!

Buying token is not complicated if you invest with someone who makes it easy! Just open an account with a qualified asset tokenization company and create a digital wallet to store your applications.

Access our token marketplace, learn about the most varied offers and choose the ones that align with your investor profile. And you can start investing in digital assets for as little as 50 reais!

Open your account with BLOCKBR and earn more with your investments!

BLOCKBR Digital Assets is a fintech specialized in tokenization of assets and investments that delivers infrastructure to the regulated and non-regulated market through an All-In-One platform that offers the transformation and interoperability between assets and investors.

For more information, visit: http://www.blockbr.com.br or @blockbr_ on social networks

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