Unit - The new digital currency BRICS is changing the game rules

A breakthrough in the global financial system may be closer than it seems. BlockBeats cites the Russian Institute of Economic Strategies, which announced that on December 8th, BRICS officially unveiled a prototype transaction tool called “Unit.” This innovative BRICS currency is a direct response to dollar dominance and represents a concrete step toward de-dollarization.

How does Unit work and what is its structure?

Unit is a digital instrument based on a diversified reserve basket. Its foundation is a wallet consisting of two components: 40% physical gold, and the remaining 60% are currencies of member countries. Each of the five currencies — Brazilian real, Chinese yuan, Indian rupee, Russian ruble, and South African rand — has equal representation in the basket.

The project was implemented by the IRIAS (Institute of Economic Strategies of the Russian Academy of Sciences) through the issuance of the first 100 units on October 31st. Initially, each unit was valued at one gram of gold, ensuring transparency and initial stability.

Valuation mechanism and volatility

The elegance of this system lies in its dynamic adjustment. The value of each unit changes daily depending on the exchange rates of the component currencies relative to the gold price. This solution prevents rigid pegging and allows for the actual absorption of market fluctuations.

By December 4th, observed market fluctuations caused a shift in the valuation of the entire basket. The reserves were recalculated to the equivalent of 98.23 grams of gold, meaning that the value of each Unit was then 0.9823 grams of gold.

What does this mean for the future?

Although the BRICS currency Unit remains in the pilot stage and has not yet gained formal international policy status, its very existence sets a new direction. This is no longer theoretical discussion but a concrete implementation of an alternative to dollar-based systems.