BRICS currency unit: a digital solution backed by gold is transforming the international trading system

In December 2024, the BRICS group approved a prototype of an innovative digital currency called Unit. Developed by the Institute of Economic Strategies of the Russian Academy of Sciences (IRIAS), it marks a significant step toward building an independent financial system. Unit is an innovative transaction instrument designed to facilitate trade among member countries while reducing dependence on the US dollar.

Structure of Unit: Gold and National Currencies Wallet

The new BRICS currency is based on a reserve wallet with a precisely defined composition. Forty percent of the value of Unit is physical gold, while the remaining sixty percent consists of the currencies of the five member countries: Brazilian real, Chinese yuan, Indian rupee, Russian ruble, and South African rand. Each currency has equal weight in the basket, ensuring balanced representation of all members. After the issuance of 100 Units in October 2024, each unit initially valued one gram of gold. In the first weeks of operation, market exchange rates fluctuated, causing changes in the basket’s valuation — by early December, each unit was worth 0.9823 grams of gold.

Dedollarization: A New Era of International Transactions

The BRICS initiative with the Unit currency, although not yet an official policy, represents a fundamental shift in the global financial system. The project aims for the long-term reduction of dollar dominance in international trade. By introducing an instrument based on national currencies and gold, BRICS demonstrates its commitment to building alternative channels for trade exchange. The dynamic nature of Unit’s value — changing daily based on the exchange rates of its component currencies against gold — makes it a flexible tool adaptable to changing market conditions. This innovative BRICS currency could set a precedent for other economic coalitions seeking financial independence.