This is huge. We will gleefully break it down best we can in our Weekly post Sunday. It lies directly on the path of “things to do” when building an alternative to SWIFT.
NDB could become ‘clearing center’ for common BRICS currency — Russian Minister
SHANGHAI, May 31. /TASS/. The New Development Bank (NDB) created by BRICS countries may become a kind of a clearing center if the idea of creating a common currency for BRICS members materializes, Finance Minister Anton Siluanov told TASS on Wednesday.
"The idea of creating a common currency, although I would probably call it a payment unit inside BRICS countries, is floating around and is being discussed. We also have proposals about using digital financial assets supported by real assets, for example gold - stablecoins," the Minister said.
Such proposals have not been discussed in detail, he noted. "Nevertheless, we are ready to discuss them within the New Development Bank framework that may become a kind of clearing center. This is not the core business for the bank now but this is [also] not the main obstacle to solve the task," Siluanov said.
"National currencies are used in conditions of payment restrictions," the minister said, noting that about 70% of payments with China are made in national exchanges now.
"This is an absolutely proper decision. However, such relations cannot be built with all countries; not all countries have a sound currency and a balanced trade turnover. At the same time, the omnibus clearing will significantly simplify the task of balancing export and import flows. Flexibility when using the new payment unit will be supported thereby, he added.
If you wish to refamiliarize yourself before Sunday’s post, some key topics involve:
Gold as settlement medium- What’s a Settlement Medium?
Bullion Bank rehypothecation - Banking’s Rehypothecation Crisis
Blockchain alternatives to SWIFT- Guaranteed Fiat Multipolarity
Anything on Zoltan’s Bretton Woods 3 topic- Bretton Woods 3 titles