Shedding its long-standing price sensitivity to the price of gold, Thailand is currently a gold buyer driving the price up, just like China. Present changes in the global gold market, in which pricing power is shifting East, could be a precursor to a transformation in the international monetary order. Possibly, trade in the East will settle through a system connecting local CBDCs, while any remaining imbalances are transferred in gold.
Thanks for your report. It is consistent with other stories of the Global South turning away from US treasures. Myopic Western investors seem oblivious.
How to you combine project mBridge and THE UNIT which should be adopted ( if all goes right ) end of this year by the BRICS member whose China is a part. From my reading I understand that the infrastructure allowing to use THE UNIT ( basket of 40% gold, 60% BRICS currencies ) wont be based on mBridge..So it seems that the 2 projects are in competition. What is your opinon ?
IMO they are not the same products...The Unit goal seems to be a tool for dedollarization. mBridge is just a CBDC using all the actual currencies. What I find strange is that China is part of the 2 projects. Some opinion?
I think the point you raise at the end is critical, and often overlooked by all the discussions, how is the exchange rate determined and who is the other side of each transaction? crossing currencies means there is a buyer and a seller of the currency. currently, western banks dominate that market and if they are not part of the system, who will provide the liquidity necessary to transact?
Perhaps FX trading in the East based on RMB pairs. Yes, as far as I know mBridge doesn’t solve liquidity, it’s just for settlement. Better than nothing though.
Thanks for your report. It is consistent with other stories of the Global South turning away from US treasures. Myopic Western investors seem oblivious.
How to you combine project mBridge and THE UNIT which should be adopted ( if all goes right ) end of this year by the BRICS member whose China is a part. From my reading I understand that the infrastructure allowing to use THE UNIT ( basket of 40% gold, 60% BRICS currencies ) wont be based on mBridge..So it seems that the 2 projects are in competition. What is your opinon ?
I think mBridge has more potential than UNIT.
IMO they are not the same products...The Unit goal seems to be a tool for dedollarization. mBridge is just a CBDC using all the actual currencies. What I find strange is that China is part of the 2 projects. Some opinion?
Many countries are part of many projects.
I think the point you raise at the end is critical, and often overlooked by all the discussions, how is the exchange rate determined and who is the other side of each transaction? crossing currencies means there is a buyer and a seller of the currency. currently, western banks dominate that market and if they are not part of the system, who will provide the liquidity necessary to transact?
Perhaps FX trading in the East based on RMB pairs. Yes, as far as I know mBridge doesn’t solve liquidity, it’s just for settlement. Better than nothing though.