In the article, I present the formula for the calculation of the supply of the BRICS currency:
`M = ForT + FDI + PI + ForEx + G&EX + InterSec + Der + ForDeposit + EuroCurrency + MTransfer + Etc.`
Each component in this formula represents a key economic indicator:
- `ForT`: Foreign Trade, encompassing the total value of exports and imports between the BRICS nations and the rest of the world.
- `FDI`: Foreign Direct Investment, capturing the inflow and outflow of investment capital.
- `PI`: Portfolio Investment, including investments in stocks, bonds, and other financial instruments.
- `ForEx`: Foreign Exchange Transactions, representing the volume of currency exchanges.
- `G&EX`: Gold and Foreign Exchange Reserves, a crucial component that partially backs the value of the BRICS currency with an asset holding intrinsic value - gold.
- `InterSec`: International Securities, such as bonds issued by BRICS nations in international markets.
- `Der`: Derivatives, financial contracts deriving their value from underlying assets or benchmarks.
- `ForDeposit`: Foreign Deposits, the total value of BRICS currency held in foreign accounts.
- `EuroCurrency`: Eurocurrency Market Operations, capturing the BRICS nations' activities in other currency markets.
- `MTransfer`: International Money Transfers, the flow of funds between the BRICS and other nations.
- `Etc.`: Other relevant economic indicators as needed. The article doesn't develop on the specifics, but you can imagine one of those factors as being the country's Bitcoin reserves.
As such, the supply is algorithmic (akin to UniswapV2's approach of`x*y=k`) and the formul aims to create a BRICS currency supply that dynamically responds to the collective economic state of the member nations
Democracy will always triumph over authoritarianism
Arguments in the form of "I dislike X, therefore everything associated with X is bad" are not very useful. I'll refrain from answering to any follow-ups, unless they pertain to the topic of the article.
I will however, be glad to re-engage on queries related to the BRICS digital currency as a cryptocurrency on a public blockchain.
Seems like an extra layer of non-value that could be leveraged by enthusiasts to more thoroughly extract any real value that may turn out to be underlying the currency itself to begin with, or any time into the future. To everyone elses' disadvantage.
And then there's the really negative side.
Currencies have been seeking shelter from time to time since for them in some ways the cold war never ended.
Currency war has always been rumbling in the background, even as people did a worthwhile amount of disarmament. The Euro came along and there was reduced diversity of currencies to argue over.
Now it's almost like some of the currencies are at each other's throats along with the political parties they are attached to or invested in.
You can't separate the currencies and the politics that go along with it.
And more politicians who are non-advanced by nature are wielding destructive power and triggering the need for re-armament.
There goes non-war currency.
As if it ever came home to roost.