At a major summit in Russia last year, a banknote was unveiled that carried more symbolism than monetary value.

It hinted at the growing ambitions of BRICS – a group of emerging economies anchored by Brazil, Russia, India, China and South Africa – to develop alternatives to the existing global financial system.

The banknote itself, ringed with national flags and multilingual text, was dubbed an R5: acknowledging the ruble, real, rupee, renminbi and rand of the bloc’s core members.

Now, there are moves to turn that symbolism into something more concrete. This December, speculation increased around plans for a new BRICS currency and payment system known as the UNIT.

Designed by the International Reserve and Investment Asset System, the UNIT is backed by a fixed reserve basket of 40% gold (by weight) and 60% in BRICS currencies. It would be delivered via a digital platform using transparent blockchain technology.

This combination of a stable asset with a set of diversified currencies reduces exposure to financial volatility and the targeting of single currencies by speculators, while building trust between UNIT users.

The development is significant because of the BRICS group’s scale and influence.

Formed in September 2006 by Brazil, Russia, India and China........

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