BRICS New Currency Could CRASH The US Dollar?! This Is How!

Summary

Le script du video traite de la fin des spéculations sur la fin de l'ère du pétrodollar, et introduit un système de paiement alternatif, Embrdige, lancé par les pays BRICS. Ce système, basé sur Ethereum, permet de contourner le système financier centrée sur les États-Unis et le SWIFT, offrant ainsi aux pays une plus grande indépendance. L'adhésion de l'Arabie Saoudite à Embrdige souligne l'importance de cette initiative, qui pourrait remettre en question la domination du dollar américain et influencer les allégeances géopolitiques.

Takeaways

• 📰 Une rumeur selon laquelle l'accord de 50 ans entre les États-Unis et l'Arabie Saoudite visant à facturer le pétrole uniquement en dollars américains n'a pas été renouvelé est fausse.
• 🌐 Les pays BRICS (Brésil, Russie, Inde, Chine et Afrique du Sud) ont lancé un nouveau système de paiement, nommé Embrdige, basé sur la technologie Ethereum.
• 💡 Embrdige est un système de monnaie numérique centrale (MNBC) destiné uniquement aux institutions et non au grand public.
• 🔒 Ce système est privé et nécessite une autorisation pour être utilisé, avec des nœuds gérés par les banques centrales et commerciales participantes.
• 🔄 Embrdige est conçu pour contourner le système financier centrée sur les États-Unis, y compris le système de paiement SWIFT.
• 🌍 L'Arabie Saoudite a rejoint le système de paiement BRICS, ce qui soulève des questions sur les relations avec l'Occident et la Chine.
• 🏦 La Banque de développement nouvelle (NDB), une initiative BRICS, pourrait potentiellement utiliser Embrdige pour ses opérations de prêts et de développement.
• 💼 L'adoption d'Embrdige par d'autres banques centrales et commerciales indique un intérêt croissant en dehors du système financier occidental.
• 💡 La création potentielle d'une monnaie BRICS pourrait être utilisée comme monnaie pivot dans le système Embrdige pour éviter de se retrouver avec des devises inutiles.
• 🛑 Les sanctions économiques imposées à la Russie illustrent les défis que pourrait rencontrer Embrdige, notamment l'utilisation efficace des devises accumulées.
• 🕊️ Embrdige offre la possibilité aux pays de s'affranchir de l'influence américaine et de prendre des décisions plus indépendantes en matière de commerce international.

Q & A

Quel est le sujet principal de la vidéo?

La vidéo discute de la fin des spéculations selon lesquelles les États-Unis et l'Arabie Saoudite avaient un accord de 50 ans pour fixer les prix du pétrole uniquement en dollars américains, et introduit le lancement d'un nouveau système de paiement par les pays du BRICS qui pourrait menacer la domination du dollar américain.

Quels sont les pays membres du BRICS?

Le BRICS est un acronyme pour le Brésil, la Russie, l'Inde, la Chine et l'Afrique du Sud.

Qui a créé l'acronyme BRICS et pourquoi?

L'ancien économiste de Goldman Sachs, Jim O'Neal, a créé l'acronyme BRICS en 2001, prévoyant que ces quatre pays connaîtraient la croissance économique la plus importante d'ici à 2050, en partie à cause de populations en croissance, de coûts de main-d'œuvre bas et d'une abondance de ressources.

Quel est le rôle de Swift dans le système de paiement mondial?

Swift est le plus grand système de paiement au monde et est aligné avec les intérêts occidentaux. Il est souvent utilisé comme une arme financière pour bloquer les paiements à certaines parties.

Pourquoi les pays du BRICS cherchent-ils à créer un système de paiement alternatif à Swift?

Les pays du BRICS cherchent à créer un système de paiement alternatif à Swift pour contourner les restrictions financières imposées par les intérêts occidentaux et pour faciliter les transactions internationales sans avoir à passer par le dollar américain.

Quel est le nom du nouveau système de paiement lancé par les pays du BRICS?

Le nouveau système de paiement lancé par les pays du BRICS s'appelle Embridge.

Sur quoi est basé le système Embridge?

Embridge est basé sur la technologie Ethereum. Il utilise une blockchain appelée MBL, codée en Solidity et utilise la machine virtuelle Ethereum (EVM) pour les contrats intelligents.

Quel est le but principal du système Embridge?

Le but principal d'Embridge est de permettre aux utilisateurs de contourner le système financier centrée sur les États-Unis, y compris Swift et les transactions intermédiaires des banques dans les transactions internationales ainsi que le dollar américain dans les transactions de change.

Quels sont les avantages potentiels de l'adoption du système Embridge pour les pays qui ne possèdent pas de ressources naturelles?

L'adoption d'Embridge permettrait aux pays sans ressources naturelles de pouvoir acheter directement ces ressources auprès des producteurs sans avoir à dépendre de l'infrastructure financière contrôlée par les États-Unis, ce qui leur donne plus d'indépendance et de capacité à prendre des décisions plus autonomes.

Quelle est la position actuelle de l'Arabie Saoudite concernant le BRICS et Embridge?

L'Arabie Saoudite a rejoint le système Embridge, ce qui indique son intérêt pour une coopération financière plus étroite avec les pays du BRICS, bien qu'elle ait envoyé des signaux mitigés concernant une participation formelle au BRICS.

Outlines

00:00

🌐 La fin de l'ère du pétrodollar ?

Le paragraphe 1 aborde les rumeurs récentes sur la non-renouvellement d'un accord de 50 ans entre les États-Unis et l'Arabie Saoudite visant à fixer le prix du pétrole uniquement en dollars américains. Bien que cela s'avère être une fausse nouvelle, cela ne signifie pas que rien ne s'est passé. En réalité, pendant que tout le monde était concentré sur le pétrodollar, les pays du BRICS ont lancé un nouveau système de paiement que l'Arabie Saoudite a rejoint. Le texte explique que le BRICS est un acronyme pour le Brésil, la Russie, l'Inde, la Chine et l'Afrique du Sud, et que l'objectif initial de ces pays était de devenir les économies les plus dynamiques d'ici 2050. Cependant, après la crise financière mondiale, la Chine a commencé à suivre sa propre voie, tandis que les prix des matières premières ont chuté. Le paragraphe souligne également que les pays BRICS continuent d'avoir des avantages géopolitiques en raison de leur population croissante, de leurs coûts de main-d'œuvre bas et de leurs richesses en matières premières. L'un des points clés est que les pays BRICS travaillent sur un système de paiement alternatif à SWIFT, qui est principalement utilisé par les intérêts occidentaux et a été utilisé comme une arme financière pour bloquer les paiements à certaines parties.

05:01

💼 Lancement du système de paiement BRICS

Le paragraphe 2 révèle que le nouveau système de paiement lancé par les pays BRICS s'appelle Embridge. Ce système a été développé par les banques centrales de la Thaïlande, de Hong Kong, de Chine et des Émirats Arabes Unis, avec l'aide de la Banque des réglementations internationales (BIS). Embridge est un système de monnaie numérique de banque centrale (MNBC), qui est essentiellement un copie d'Ethereum, utilisant une blockchain appelée MBL codée en Solidity et utilisant la machine virtuelle EVM pour les contrats intelligents. Embridge est destiné à être utilisé uniquement par des institutions, et non par le grand public. Le système permet aux utilisateurs de contourner le système financier centrée sur les États-Unis, y compris le passage par SWIFT et les transactions interbancaires dans les transferts internationaux, ainsi que l'utilisation du dollar américain dans les transactions de change. Le paragraphe souligne également que l'adoption d'Embridge pourrait potentiellement remplacer le dollar américain et que le nombre de membres observateurs, c'est-à-dire les banques centrales et commerciales envisageant de rejoindre Embridge, est passé à 26.

10:03

🌐 L'impact géopolitique de Embridge

Le paragraphe 3 explore l'impact géopolitique potentiel d'Embridge sur le système financier mondial. Il explique que le système permet de contourner le dollar américain en tant que monnaie pivot pour les transactions de change, ce qui réduit la demande pour le dollar et, par conséquent, sa valeur. L'adoption d'Embridge facilite le commerce international en éliminant les banques intermédiaires et SWIFT des transactions. Le texte souligne également que l'Arabie Saoudite a rejoint Embridge, ce qui est considéré comme un signal fort de l'intérêt des pays pour un système financier alternatif. L'Arabie Saoudite et d'autres pays ont été invités à rejoindre l'alliance BRICS+, ce qui indique un désir de bénéficier des avantages économiques de l'appartenance à un groupe de pays producteurs de matières premières. Le paragraphe mentionne également que le BRICS n'est pas une organisation établie avec un siège, un site web officiel ou même un charte, mais plutôt un club de pays du Sud mondial qui vise à établir un système financier avant de créer une organisation.

15:04

🏦 La NDB et le potentiel d'Embridge

Le paragraphe 4 discute de la possibilité que la Nouvelle Banque de Développement (NDB), une organisation financière similaire au FMI et à la Banque mondiale créée par le BRICS en 2015, utilise Embridge. La NDB a un fonds de 100 milliards de dollars destiné au financement des infrastructures et des prêts, mais elle pourrait rencontrer des problèmes de paiement si elle tentait de prêter de l'argent de manière prédatrice, similaire à ce que fait le FMI. Cependant, avec Embridge, ces problèmes pourraient être évités. Le texte souligne que la NDB est basée en Chine, et que la Chine, Hong Kong et les Émirats Arabes Unis sont des participants d'Embridge, ce qui suggère une possible intégration de la NDB dans le système. Le paragraphe se termine en soulignant que l'adoption d'Embridge pourrait marquer le début de la fin de la domination du dollar américain, mais que cela nécessitera du temps et pourra rencontrer des obstacles.

20:04

🔄 Les défis et l'avenir d'Embridge

Le paragraphe 5 aborde les défis et les perspectives d'Embridge. Il explique que, bien que le système soit encore en ses balbutiements, il est clair que le BRICS agit principalement comme une initiative économique. Les pays qui rejoignent le BRICS le font souvent pour bénéficier des avantages économiques liés à l'appartenance à un groupe de producteurs de matières premières. Embridge permet aux pays sans matières premières de les acheter directement des producteurs sans avoir à dépendre de l'infrastructure financière contrôlée par les États-Unis. Cela donne aux pays la possibilité de s'aligner avec qui ils le souhaitent et de prendre des décisions indépendantes. Cependant, le texte souligne que cela ne sera pas facile et que les États-Unis ne laisseront pas leur domination du système financier sans se battre. Les États-Unis ont le dollar et les dettes dollarisées des pays comme armes pour maintenir leur contrôle. Le paragraphe se conclut en disant que le lancement d'Embridge pourrait marquer le début de la fin de la domination du dollar américain, mais que cela nécessitera du temps et pourra rencontrer des obstacles.

Keywords

💡Pétrodollar

Le terme 'Pétrodollar' fait référence à la politique selon laquelle l'or noir est principalement échangé en dollars américains. Cela a renforcé la position dominante du dollar dans les échanges internationaux et la finance globale. Dans la vidéo, on mentionne que les spéculations sur la fin de cet accord entre les États-Unis et l'Arabie Saoudite ont été des fake news, mais cela a conduit à une réflexion sur l'avenir du pétrodollar.

💡BRICS

BRICS est un acronyme pour le Brésil, la Russie, l'Inde, la Chine et l'Afrique du Sud. Ces pays sont souvent associés à une croissance économique rapide et à une influence grandissante sur la scène mondiale. La vidéo discute de l'initiative BRICS de créer un système de paiement alternatif qui pourrait menacer la dominance du dollar américain.

💡Système de paiement

Un 'système de paiement' est une infrastructure qui permet les transactions financières entre différentes parties. Dans le contexte de la vidéo, le système de paiement BRICS est un développement clé pour contourner le système financier centrée sur les États-Unis et le SWIFT.

💡SWIFT

SWIFT est le nom de la Société pour l'interbancaire de télétransmission, qui est le plus grand système de messagerie financière au monde. Il est utilisé pour les transactions internationales entre les banques. La vidéo souligne que les pays BRICS cherchent à créer un système alternatif à SWIFT pour échapper aux influences occidentales.

💡M-Bridge

M-Bridge est le nom du nouveau système de paiement lancé par les pays BRICS. Il est basé sur la technologie blockchain et est conçu pour permettre des transactions internationales sans passer par le système financier occidental. La vidéo décrit M-Bridge comme un élément clé dans la réduction de la dépendance au dollar américain.

💡CBDC

Les 'CBDC' sont les 'monnaies numériques centrales', émises et contrôlées par les banques centrales. Dans la vidéo, M-Bridge est mentionné comme un système de CBDC à grande échelle, utilisé uniquement par les institutions et non par le public en général.

💡Ethereum

Ethereum est une plateforme de blockchain qui permet la création de contrats intelligents et de diverses applications décentralisées. M-Bridge est basé sur la technologie Ethereum, mais avec une blockchain privée et autorisée appelée MBL.

💡Consensus de validation

Le 'consensus de validation' est le processus par lequel les transactions sont vérifiées et enregistrées sur une blockchain. M-Bridge utilise un mécanisme de consensus appelé 'dashing', qui est plus rapide que les méthodes traditionnelles en validant des morceaux aléatoires des blocs plutôt que de les valider entièrement.

💡Nouveau développement banque (NDB)

La 'Nouvelle Banque de Développement' est une organisation financière créée par les pays BRICS, similaire au FMI et à la Banque mondiale. Elle est chargée de financer le développement des projets d'infrastructure. La vidéo suggère que l'NDB pourrait potentiellement utiliser M-Bridge pour ses transactions.

💡BRICS+

BRICS+ est un terme utilisé pour décrire l'expansion de l'initiative BRICS en incluant d'autres pays, comme l'Arabie Saoudite, qui cherchent à s'associer aux pays fondateurs pour bénéficier de l'influence économique grandissante de BRICS. La vidéo mentionne que plusieurs de ces pays ont rejoint M-Bridge.

💡Dollar américain

Le 'dollar américain' est la monnaie officielle des États-Unis et la monnaie la plus demandée pour les transactions internationales, notamment pour l'achat de pétrole. La vidéo explore comment le système de paiement BRICS pourrait réduire la demande de dollars américains et ainsi affecter leur valeur et leur dominance.

Highlights

A 50-year deal between the US and Saudi Arabia to price oil in US dollars was reported not renewed, causing speculation about the end of the Petrodollar era, but it turned out to be fake news.

While attention was on the Petrodollar, BRICS countries launched a new payment system that Saudi Arabia joined, potentially threatening the US Dollar's dominance.

BRICS stands for Brazil, Russia, India, China, and South Africa, and was predicted to see the most economic growth by 2050.

The BRICS countries still have growing populations, low labor costs, and lots of commodities, which increases their geopolitical power.

There have been speculations about a BRICS currency but no concrete evidence of its creation.

BRICS has been working on an alternative payment system, different from a BRICS currency.

The new BRICS payment system, mBridge, is based on Ethereum and is designed to bypass the US-centric financial system, including Swift.

mBridge is a wholesale CBDC system, used only by institutions, and is faster due to its novel consensus mechanism called dashing.

mBridge allows for direct currency swaps between banks, removing the need for the US dollar as a bridge currency in Forex trading.

The number of observing members for mBridge has risen to 26, indicating its adoption and interest from central banks and commercial banks.

Saudi Arabia's joining mBridge could signal a move away from Western financial systems.

The BRICS alliance, now referred to as BRICS Plus, includes countries like Egypt, Ethiopia, Iran, Saudi Arabia, the UAE, and Argentina.

The New Development Bank (NDB), established by BRICS, has $100 billion for infrastructure development and loans, potentially using mBridge.

mBridge could facilitate trade between countries with their own commodities and those that need them, reducing reliance on US dollars.

The success of mBridge could challenge the US dollar's dominance in international trade and financial systems.

The US dollar's strength is tied to its use in international trade, especially for commodities priced in dollars.

mBridge participants may face challenges with currency accumulation and the need for a bridge currency within the system.

The potential creation of a BRICS currency, possibly backed by commodities, could serve as a bridge currency within mBridge.

Transcripts

recently it was reported that a 50-year

deal between the United States and Saudi

Arabia to price oil only in US dollar

had not been renewed leading to

speculation that the age of the Petro

dollar is over fake news fake news yeah

yeah now it appears this was fake news

but that doesn't mean nothing happened

while everyone was focused on the Petro

dollar fud bricks countries launched a

new payment system that Saudi Arabia

joined that's why today we're going to

tell you about the actual news that

could threaten the US Dollar's dominance

the launch of a new payment system that

brics countries have been working on for

years a payment system which believe it

or not is based on etherium this is a

video you cannot

miss okay let's start with a quick recap

bricks is an acronym for Brazil Russia

India China and South Africa the

original acronym was brick and it was

coined by former Goldman Sachs Economist

Jim O'Neal in 2001 Jim predicted that

Brazil Russia India and China would see

the most economic growth by 2050 this

was partially because all four countries

had growing populations low labor costs

and lots of Commodities it was also

partially because of geopolitics and

commodity prices China had just joined

the World Trade Organization the global

South was aligning with the US and

commodities were booming if you watched

our previous video about the bricks

you'll know this started to change after

the global financial crisis under the

leadership of zi jingping China started

going its own way at the same time

commodity prices collapsed not

surprisingly Wall Street was suddenly

not so bullish on the bricks as we

stressed in that video however the other

reasons why Goldman Sachs had initially

been bullish on the bricks haven't

changed the bricks countries still have

growing populations they still have low

labor costs and they still have lots of

Commodities all that's missing is the

commodity bull market as most of you may

have noticed commodity prices around the

world have been rising over the last few

years this has increased the

geopolitical power of the bricks not

surprisingly the average person has

started realizing this

but most western Elites continue to

pretend that the bricks aren't Rising

again the result is that it's been very

difficult to find quality information

about what's been going on with the

bricks countries particularly if you

live in the west it doesn't help that

the bricks countries are Infamous for

their government propaganda this makes

finding quality info about Hot Topics

twice as hard and when it comes to the

bricks no topic has been hotter than the

the possibility that the block will

launch its own shared currency to rival

the US dollar there have been countless

reports claiming that this so-called

bricks currency would be gold backed or

crypt based but no concrete evidence

that it's actually coming if you look at

the sources for these headlines you'll

notice they're often off-the-cuff

comments made by government officials

from brics countries or proposed ideas

which never even reach the pilot stage

in other words the creation of a

Bonafide bricks currency doesn't seem to

be on the table for now the creation of

an alternative payment system however

certainly is to clarify a brics currency

and a brics payment system are two

completely different things a brics

currency would be a literal currency

like the US dollar or the Euro for

example whereas a brics payment system

is well a literal payment system the

payment rails for any currency

consider that Russian firms have

reportedly been conducting trade with

Chinese firms using tether's usdt

stablecoin which is of course pegged to

the US dollar this is extremely

significant because it reveals the

elephant in the room it's not the US

dollar that's the problem for the bricks

it's the payment rails that it runs on

now the name of this elephant is Swift

the world's largest payment system

obviously Swift is aligned with Western

interests and it's been increasingly

used as a financial Weapon by blocking

payments to certain parties put simply

the Swift payment system is a much

bigger problem for the brics than the US

dollar that's why the bricks have been

working on an alternative to Swift this

payment system launched in the same week

that media Outlets were freaking out

about the supposed us Saudi oil deal

coming to an end just days before that

deal was supposedly set to expire Saudi

Arabia joined the bricks payment system

it really makes you wonder if someone

hyped up the US Saudi oil thing so that

nobody would notice that the bricks had

launched a competitor to Swift now this

was exponentially more significant than

any oil deal or brics currency if the

brics payment system gets adopted it

really has the potential to Dethrone the

US dollar and by the way if you're

enjoying the video so far be sure to

thump that like button subscribe to the

channel and ping that notification Bell

so you don't miss the next

one

podcast okay welcome to the Bro crypto

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Showp bro bro bro bro

bro bro now the name of the payment

system the bricks recently released is

embridge if you watched our first video

about mbridge back in February you'll

know that it's a cbdc system that was

built by the central banks of Thailand

Hong Kong China and the United Arab

Emirates with the help of the bis now

for context cbdc stands for Central Bank

digital currencies which are well

digital currencies that are issued and

controlled by central banks the bis or

bank for international settlements is

the so-called bank for central banks and

it's been helping central banks around

the world roll out their CBD C DC

Systems if you know anything about cbdcs

you'll know they are seriously dystopian

since they make it possible for central

banks and governments to control how you

spend and even how much you can save the

catch is that there are technically

multiple types of cbdcs each with its

own features and purpose broadly

speaking there are two types of cbdcs

retail cbdcs which will be used by plebs

like you and me and wholesale cbdcs

which will be used by select individuals

and institutions as you might have

guessed embridge is a wholesale cbdc

system and it's meant to be used only by

institutions and as I mentioned in the

intro embridge is based on etherium in

fact it's essentially an ethereum copy

it uses a blockchain called the MBL

which is coded in solidity and uses the

evm for smart contracts of course the

difference between ethereum and the MBL

is that the MBL is private and

permissioned this means you need to be a

central bank or Commercial Bank to use

the MBL naturally these central banks

and Commercial Banks run the nodes on

the MBL with participating central banks

running de facto validator nodes and

participating commercial Banks running

de facto relay nodes another difference

between embridge and ethereum is that

embridge seems to be much faster this is

because of its novel consensus mechanism

called dashing now dashing was developed

by Chinese researchers and it validates

a block by checking random chunks of it

rather than the whole thing if this

sounds familiar that's because dashing

is analogous to Celestia's data

availability sampling more about that in

the description I digress now in case it

wasn't clear enough the primary purpose

of embridge is to make it possible for

its users to bypass the existing us

Centric Financial system this not only

includes bypassing Swift but also

bypassing all intermediary banks in

crossborder transactions as well as the

US dollar in Forex Trading for reference

the US dollar is basically a bridge

currency especially for large

transactions so if you want to swap say

a large amount of New Zealand dollars

for Canadian dollars you'll have to swap

New Zealand dollars for US dollars and

then us dollarss for Canadian dollars

that's just because it's not always

possible to trade lots of New Zealand

Dollars directly for Canadian dollars

with embridge you'd be able to swap New

Zealand dollars for Canadian dollars

directly from a bank in New Zealand to a

bank in Canada assuming these banks are

a part of the embridge system this

removes the US dollar as the bridge

currency removes intermediary Banks from

the transfer and removes Swift from the

equation this is extremely significant

besides the fact that it facilitates

International Trade the fact that it

removes the US dollar as the bridge

currency means that the tens of

trillions of dollars of demand coming

from large Forex transfers disappears in

plain English the demand for USD Falls

by trillions of dollars this weakens the

US dollar as the Dollar's strength is

fundamentally a product of supply and

demand just like every other asset if

the demand for US Dollars goes down

because fewer countries are using it as

a bridge currency for Forex transactions

its value will go down assuming the same

or more Supply and here is where things

get crazy if you watched our recent

video about the bis's cbdc survey you'll

know that central banks seem to be

turning their focus away from retail

cbdcs and turning more towards wholesale

cbdcs what are the chances that this is

because they want to become a part of

embridge and this ties in to Saudi

Arabia's recent decision to join

embridge the bis revealed this on the

same day it launched the new payment

system the bis also revealed that the

number of observing members I.E the

number of central banks and Commercial

Banks considering joining embridge has

risen to

26 this this too is extremely

significant and not just because it

means mbridge is being adopted for those

unaware last year the bricks invited six

countries to join its growing Alliance

which is now being referred to as bricks

plus these countries were Egypt Ethiopia

Iran Saudi Arabia the UAE and Argentina

as some of you may have heard every one

of these countries accepted except for

Argentina which was to be expected given

that its new Presidente Javier Malay

appears to be not so subtly aligned with

the global North whatever the case

what's fascinating is that Saudi Arabia

has been sending mixed signals about

joining the bricks as with headlines

related to stuff like the bricks

currency there have been some stories

suggesting that Saudi Arabia had joined

the bricks and others claiming it had

not with both citing official sources as

the saying goes though actions speak

louder than words and Saudi Arabia

joining embridge is a very loud action

as many geopolitical experts have

pointed out Saudi Arabia's lack of

clarity around joining the bricks is

likely because it doesn't want to

increase friction with its Western

counterparts this is something we

pointed out in our previous video about

the bricks India has been keeping things

lowkey on the bricks front as well and

this makes perfect sense when you

realize that the bricks technically

isn't an established organization for

the time being the bricks or rather the

bricks plus is effectively a club

consisting of countries from the global

South it doesn't have a headquarters an

official website or even a charter with

its stated aims as we also mentioned in

our previous bricks video this is

presumably because the bricks countries

need to establish a financial system

before establishing an organization to

put things into perspective the UN which

is controlled by the West was only

established after the Breton Woods

system had been set up a big part of why

the Breton Woods system became so

powerful was because of Institutions

like the IMF and the World Bank which

practically trapped foreign countries

with dollar denominated debts that had

lots of strings attached if history is

any indication this means the bricks

need to take a similar path as it so

happens the brics established a

financial organization analogous to the

IMF and World Bank called the new

development bank or NDB back in 2015 the

NDB seems to be the only brics

initiative with an actual entity and it

has $100 billion earmarked for

infrastructure development and Loans in

theory this gives the NDB the power to

do what the IMF and World Bank are

famous for go to a country that

desperately needs financial support and

give it to them on the condition that

they do things that are are favorable to

the bricks in practice there's one big

problem the existing payment system if

the NDB were to engage in IMF level

predatory lending the US and its allies

would get word of it and probably make

life harder for the NDB and its

borrowers similarly if the NDB were to

give loans to countries that aren't

close allies of the United States it

could likewise find itself experiencing

payment frictions with

however all of these problems disappear

now although we couldn't find any

concrete evidence that the NDB is going

to use embridge the circumstantial

evidence is certainly there for starters

the NDB is based in China recall that

Hong Kong and China are two of the five

participants in embridge the UAE also

happens to be one of the shareholders in

the NDB and you'll recall that it too is

a participant in embridge that makes

three out of

meanwhile Saudi Arabia has reportedly

been trying to join the NDB since last

year and it recently joined embridge

that's four out of five this leaves

Thailand which recently applied to join

the bricks reportedly due to

dissatisfaction with how it's being

treated by the West now we aren't sure

how enbridge's governance process works

but we know that it has one and we're

certain that all participants will vote

to plug in the ND DB if it comes up so

this brings me to the big question and

that is what's next for the bricks and

their embridge payment system well the

answer is complicated I'll start by

saying that mbridge is still in its

early stages the recent launch was a

minimum viable product or MVP which as

the name suggests is its initial public

release that said though it's clear that

brics exists primarily as an economic

initiative it's also clear that the

reason why so many countries are joining

it is because they want the economic

benefits that come with being affiliated

with large commodity producers this

underscores the extreme significance of

embridge you see the biggest reason why

the US dollar has so much value is

because it's required for international

trade specifically to buy Commodities

like oil which are priced in dollars

this begs the trillion dollar question

as a country what do you need more the

Commodities or the dollars required to

buy them well logically the answer

depends on the country if a country has

lots of Commodities then it probably

doesn't need US dollars that much

conversely if a country doesn't have

lots of Commodities then it probably

needs the US dollar a lot the

consequence is very predictable

geopolitical alignments countries that

have lots of their own Commodities have

the power to defy the US and its allies

whereas those that don't must align with

the US and its allies or else be starved

of dollars but again it's not the US

dollar per se it's the rails on which it

runs remember you can always pay in cash

if needs be what Enbridge ultimately

does is allow countries without

Commodities to purchase these

Commodities directly from producers

without having to rely on us controlled

infrastructure put differently it gives

them freedom from US influence and

allows them to make more independent

decisions as you can imagine this is a

very attractive value proposition given

that just like most people most

countries just want to be left alone

they don't want to be porns in the proxy

wars between the US and China they just

want to live in peace and embridge gives

them the tools they need to stay neutral

the catch is that this will be easier

said than done and this is where things

get truly interesting and I'll use a

real world example to explain the

unprecedented Financial sanctions levied

against Russia have made it very

difficult for the country to use US

dollars for trade leaving it with the

currencies from its counterparties last

year one of Russia's officials revealed

that it had amassed billions of Indian

rupees that it couldn't use as a result

of selling oil in rupees to India now

under normal circumstances Russia would

have traded those rupees for us dolls so

that it could use them to buy stuff from

other countries but it can't in practice

this means that Russia can only use

these Rupees to buy from India the

problem is that Russia already has most

of what India is selling FYI India's

primary export is petroleum products

which Russia also has lots of there's

only so many textiles and so much rice

and whatever else that Russia needs to

buy you can think of it as like being

given a credit card with an unlimited

balance that can only be used in a

single shop that mostly sells stuff you

already have and don't need more of this

is a problem that mbridge participants

will run into as more currencies start

being added to the payment system this

will inevitably result in the need for a

bridge currency that's analogous to the

US dollar and this is where the mixed

messages about the bricks currency start

to make sense everyone has been assuming

that the brick currency will be used by

regular people that it will be a

standard retail theat currency however

it's likely that the bricks currency

will be wholesale contained to the

Enbridge system and used exclusively by

the central banks and Commercial banks

that are a part of that system notably

its only purpose could be to ensure that

nobody is left holding say billions of

rupees that they don't need the idea

that the bricks currency will be backed

by a basket of Commodities starts to

make a lot more sense when you look at

it through the lens of being a bridge

currency on embridge more importantly

its creation will be a prerequisite for

smaller countries with smaller

currencies to join the embridge system

after all lots of countries desperately

need the petroleum products India is

selling and would therefore be happy to

hold billions of rupees via embridge the

same can't be said for countries like

Costa Rica however whose largest exports

are photography products countries won't

want to huddle billions of Costa Rican

colons in some then the launch of

embridge could very well Mark the

beginning of the end of the US Dollar's

dominance but it's going to take time

and there will be lots of setbacks along

the way the US will also not go quietly

and will do everything in its power to

ensure it maintains control of the

financial system contrary to popular

opinion the US will not do this through

War because it has a weapon more

powerful than any nuclear bomb the US

dollar and the trillions of dollar

denominated debts that countries owe

making the dollar stronger is enough to

bring many countries to their knees as

we saw in late

2022 and say did you see that the dxy is

rising probably

nothing okay that's all for today's

video so if you learned something new be

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subscribe to the channel and ping that

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currency is really about then share this

video with them as always thank you so

much for watching and I'll see you in

the next one this is guy over and out

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