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The BRICS nations have taken a notable step in their long-term push to reduce reliance on the US dollar by launching a working prototype of a gold-backed digital trade currency called the “Unit.” Developed by the Institute for Economic Strategies of the Russian Academy of Sciences (IRIAS), the pilot marks a new phase in the group’s exploration of alternative settlement systems.
1. What the “Unit” Is and How It Works
The Unit is designed as a digital settlement instrument backed by a mixed reserve basket.
Key elements of the prototype:
- Backed by 40% physical gold and 60% BRICS national currencies, equally weighted among the real, yuan, rupee, ruble and rand.
- IRIAS issued 100 Units on October 31, each initially tied to the price of 1 gram of gold.
- The value adjusts daily based on currency movements relative to gold.
By December 4, fluctuations had shifted the basket’s value to 98.23 grams of gold, making each Unit equal to 0.9823 grams of gold.
2. Why BRICS Is Exploring a Dollar Alternative
The search for a replacement to dollar-based settlement accelerated after sanctions were placed on Russia in early 2022, which highlighted the geopolitical influence of the US over global financial rails.
Drivers behind the shift:
- Long-standing dissatisfaction across the Global South with dollar dominance in trade.
- Concern after swift restrictions on Russia’s access to SWIFT and USD markets.
- Growing trend of countries settling trade in national currencies—such as Russia-China and India-China transactions.
- Practical challenges for countries with large trade imbalances, which make bilateral settlements harder.
The Unit is an extension of broader dedollarisation efforts already underway.
3. Connection to Digital Currency Initiatives
BRICS nations have been experimenting with digital-currency infrastructure as part of their strategy.
Recent developments include:
- Launch of BRICS Pay, built on digital versions of existing national currencies.
- Russia’s early trials of the digital ruble within its banking system.
- Ongoing discussions about using gold-backed digital instruments for bilateral settlements.
The Unit is the first gold-referenced prototype specifically designed for multi-country trade.
4. Potential Impact on Trade and Gold Demand
While still in a pilot phase, the project is drawing attention from economists, policymakers and central banks across emerging markets.
Why it matters:
- Designed to enable trade settlement without the US dollar.
- Allows countries to retain gold reserves locally, reducing the need for physical transfers.
- Could make gold markets more liquid and easier to use for trade backing.
- Seen by many analysts as a structurally bullish signal for long-term gold demand.
African nations and several Global South economies are closely monitoring how the pilot develops.
5. Not Yet Official BRICS Policy – But a Significant Signal
The Unit has not been formally adopted by the BRICS alliance or approved by its central banks.
Instead, it represents an experimental initiative driven by members exploring alternatives to the current financial structure.
Even in prototype form, the project marks one of the clearest moves yet toward building a parallel settlement system outside the dollar.
Conclusion
The BRICS “Unit” prototype highlights a growing determination among emerging markets to rethink how global trade is settled. By tying a digital instrument to gold and a basket of national currencies, the group is testing a model that could increase financial independence and reshape cross-border transactions. Though still early and unofficial, the initiative signals an important step in the wider dedollarisation trend and underscores the rising strategic role of gold in global finance.
This article reflects the opinions of the publisher based on available information at the time of writing. It is not intended to provide financial advice, and it does not necessarily represent the views of the news site or its affiliates. Readers are encouraged to conduct further research or consult with a financial advisor before making any investment decisions.
