The introduction of the gold-backed currency could significantly lower transaction fees, facilitating intra-BRICS trade that has surged by 56% since 2017 and potentially increasing their global trade share beyond 18%.
Comprising 40% of the global population and over 30% of GDP, brics holds considerable economic power. Their pursuit of alternatives to the USD is driven by geopolitical tensions and risks posed by potential US tariffs.
Employing distributed ledger technology may enhance the security and transparency of the new currency, while tokenizing gold reserves alongside smart contracts could streamline transactions in international trade.