How the BRICS+ Unit Can Save Global Trade — Pepe Escobar

Pepe Escobar explains "The Unit" as an alternative to the USD in international trade, as well as in banking and finance. It is loosely based on the bancor proposed by Keynes at Bretton Woods, which was rejected in favor of the USD fixed to gold.

This would facilitate "de-dollarization" in the sense of providing an alternative settlement vehicle to avoid weaponization of the dollar. Another meaning of "de-dollarization" is replacement of the USD as the global reserve currency. This is not the objective of The Unit.

The Unit is essentially a benchmark token – or an index token; a post-stablecoin, digital monetary tool; totally decentralized; and with intrinsic value anchored in real assets: gold and sovereign currencies.

The Unit can be used either as part of a new digital infrastructure – what most of the Global South is striving for; or as part of a traditional banking setup.

When it comes to fulfilling traditional money functions, The Unit is – pardon the pun – right on the money. It’s meant to be used as a quite convenient medium of exchange in cross-border trade and investments – a key plank of the diversification actively pursued by BRICS+.

It should also be seen as an independent, reliable measure for value and pricing, as well as a better store of value than fiat money....

The Unz Review

How the BRICS+ Unit Can Save Global Trade
Pepe Escobar

See also

Blowback from the weaponization of the USD.

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