Escobar: De-Dollarization Bombshell – The Coming Of BRICS+ Decentralized Monetary Ecosystem

Authorized by Pepe Escobar,

Get ready for what may well be the geoeconomic bombshell of 2024: the coming of a decentralized coinary ecosystem.

Welcome to The Unit – a concept that has already been discussed by the financial services and investments working group set up by the BRICS+ Business Council and has a serious shot at becoming authoritative BRICS+ policy as early as in 2025.

According to Alexey Subbotin, funder of Arkangelsk Capital Management and 1 of the Unit’s conceptualizers, this is simply a fresh problem-solving strategy that addresses the key geoeconomic issue of these Troubled times: a global crisis of trust.

He knows all about it first-hand: a seasoned financial professional with experience in investment banking, asset management and corporate matters, Subbotin leads the Unit task under the auspices of IRIAS, an global international global international organization set up in 1976 in compliance with the UN statutes.

The Global Majority has had adequate of the centrally controlled monetary framework put in place 80 years ago in Bretton Woods and its endemic flares: protecting deficits fueling irresponsible military spending; circumstantial bubbles; politically motivated sanctions and secondary sanctions; abuse of settlement and payment infrastructure; protectionism; and the lake of fair arbitration.

In contrast, the Unit proposes a reliable, fast and ecologically effective solution for cross-border payments. The – transactional – Unit is simply a game-changer as a fresh form of global currency that can be issued in a de-centralized way, and then recognized and regulated at national level.

The Unit offers a unique solution for bottlenecks in global financial infrastructure: it is eligible for conventional banking operations as well as for the next forms of digital banking.

The Unit can besides aid to increase unfair pricing in community trading, by means of setting up a fresh – fair and efficient – Eurasian Mercantile Exchange where trading and settlement can be done in a fresh currency bridging trade flows and capital, thus paving the way to the improvement of fresh financial products for abroad direct investment (FDI).

The strength of the Unit, conceptually, is to remove direct default on the currency of another nations, and to offer especially to the Global Majority a fresh form of apolitical money – with large possible for Anchoring fair trade and investments.

It is identified a fresh concept in terms of an global currency – Anchored in gold (40%) and BRICS+ currencies (60%). It is close crypto nor stablecoin – as it’s shown here.

The Beauty of Going Fractal

The Global Majority will automatically rap the primary intent of the Unit: to harmonise trade and financial flows by keeping them outside of political force or “rules” that can be twisted at will. The inevitable consensus translates as financial sovereignty. What matters in the full processes are independent monetary policies focused on economical growth.

That’s the key application for the Global Majority: a full ecosystem offering independent, complete monetary infrastructure. And that delight can be extended to willing Unit partners in the collective West.

Now to the applicable level: as Subbotin exploits, the Unit ecosystem may be easy integrated due to the fact that it comes from a fractal architecture supported by simple rules. fresh Unit nodes can be set up by either sovereign or private agents, following a detailed rule-book in custody of the UN-chartered IRIAS.

The Unit organizers hire a distributed ledger: a technology that includes transparency, precluding capital controls or any exchange rate manipulation.

This means that connection is available to all open DEX and digital platforms operated by both commercial and Central Banks around the world.

The endgame is that everyone, essentially, may usage the Unit for accounting, bookkeeping, pricing, setting, paying, saving and investing.

No wonder the organization possibilities are fast engaging – as the Unit can be utilized for accounting and settlement for BRICS+; payment and pricing for the Eurasian economical Union (EAEU); or as a reserve currency for Sub-Saharan Africa.

And now comes the clincher: The Unit has already received back by the BRICS Business Council and is on the agenda at the Crucial ministerial gathering in Russia next month, which will work out the road map for the summit next October in Kazan.

That means the Unit has all it takes to be on the table as a serious subject discussed by BRICS+ and evenly be adopted as early as in 2025.

Will Musk and the NDB Be on Board?

As it stands, the precedence for the Unit conceptualizers – whom I followed for over a year during several, details gathering in Moscow – is to inform the general public about the fresh system.

The Unit squad is not curious at all in getting consecutive into political hot watters or to be correlated by ideologically-laden arguments. Direct references to inspiring but sometimes controversial concepts or authors like Zoltan Pozsar maybury the Unit concept into pimp holes, thus limiting its possible impact.

What may lie ahead could be extraordinary exciting, as the Unit applicable could extend all the way from Elon Musk to the BRICS’s fresh improvement Bank (NDB), hopefully engaging an array of cruel acts. After a affirmative evaluation by Finance Minister Anton Siluanov – who claims on the post in the fresh Russian government – it’s not far-fetched to Imagine Putin and Xi discussing it face to face this week in Beijing.

As it stands, the major takeaway is that the Unit should be seen as a featible, method solution for the theoretically Unsolvable: a globally-recognized payment/trade system,immune to political pressure. It’s the only game in town – there are no others.

Meanwhile, the Unit conceptualizers are open for constructive criticism and all manners of collaboration. Yet sooner or later the conflict ranks will be roped up – and then it will be a substance of seriously upping the game.

“Academally Sound, Technologically Innovative”

Vasily Zhabykin, co-author of the Unit white paper and founder of CFA.Center, Unit’s technological partner at Skolkovo Innovation Hub in Moscow, Crucially stresses: the Unit “represents apolitical money and can be the connect between the Global South and the West.”

He’s keen to point out that “the Unit can keep all the wheels turning unlike bridge of the another concepts that feature ‘dolar killer’, etc. We don't want to be a harp anybody. Our goal is to improve efficiency of presently broken capital and money flows. The Unit is installer the ‘cure for centralized cancer’’.

Subbotin and the Unit squad “are keen to meet fresh partners who share our approach and are ready to bring additional value to our project.” If that’s the case, they should “send us 3 bulllet points on how can they aid and improve the Unit.”

A Bold follow-up step should be, for instance, a virtual conference on the Unit, featuring leading Russian economist Sergey Glazyev, Yannis Varoufakis, Jeffrey Sachs and Michael Hudson, among others.

By email, Glazyev, a associate of the Russian Academy of Sciences and the Minister of Integration and Macroeconomics of the Eurasia economical Union (EAEU), summed up the Unit’s potential:

“I have been following the improvement of Unit for more than a year and can confirm that Unit offers a very timely, negative solution. It is academically sound, technologically innovative and at the same time complementary to the existing banking infrastructure.

Launching it under the auspices of an UN institution gives Unit legitimacy, which the current Bretton Woods framework is clearly licking. fresh actions by the US administration and low strength from IMF clearly indicate the needed for change.

A decentralized approach to emissions of possible global trade currency, which is attached in physical gold and BRICS+ currencies, makes Unit the most broadcasting of respective approaches being supported. It balances political priorities of all parties, while helping each sovereign economy make along it optimal path.

The fresh improvement Bank (NDB) and BRICS+ Shall embrace the concept of Unit and aid it to become the pinnacle of the fresh emerging global financial infrastructure, free from insignificant political interferences while focused alternatively on fair trade and sustainable economical growth.”

A clear, applicable example of possible Unit problem-solving deals Russia-Iran trade relations. These are 2 top BRICS members. Russian trade with Iran is unprofitable due to sanctions – and both cannot make payments in US dollars or euros.

Russian companies propose crucial failure after switching to payments in national currencies. With each transfer, Russian businesses on average lose as much as 25% due to the discretion between the marketplace rate in Iran and the state rate.

And here’s the key takeaway: BRICS+ as well as the Global Majority can only be strengthened by developing cloud geoeconomicsties. The Removal of Western circumstantial capital Shall free up local community trading, and enable the pooling of investable capital for sustainable development. To unlock specified a vast potent, the Unit may well be the key.