The BRICS group of countries – Brazil, Russia, India, China, South Africa, and from 2024/2025 also Iran, UAE, Egypt, Ethiopia, and Indonesia is actively looking for alternatives to traditional payment systems based on the U.S. dollar.
One of the most important projects supported by these countries is 'The Unit' – a cryptocurrency based on Cardano blockchain technology, secured by a structure of 40% gold and 60% of a basket of currencies from BRICS countries.
The main goal of the project is to expand trade and settlements in national currencies (e.g., yuan, rupee, real). Work is underway on a cross-border payment platform called BRICS Pay, which aims to facilitate these settlements and bypass Western systems like SWIFT. Full operational capability is expected by 2030.
The official Whitepaper of the project explains that "The Unit" aims to combine the advantages of decentralized blockchain technology with the historically proven value of gold and the stability of traditional currencies. The goal is to create a digital asset primarily intended for governments, central banks, and large corporations, which will enable easy and secure cross-border settlements.
Thus, the project aims to reduce the dominance of the US dollar in global trade and enhance the financial sovereignty of BRICS countries.
The role of Cardano in the project "The Unit":
Prototype on the Cardano blockchain: "The Unit" is a prototype token that has been pilot launched on Cardano blockchain technology. The choice of Cardano is motivated by its scalability, low transaction costs, and security.
"The Unit" differs from traditional CBDCs with its decentralized structure and exchangeability, combining the values of precious metals with the national currency on a single blockchain.
Settlement tool, not a national currency:
"The Unit" is intended to serve as a digital tool for intergovernmental trade settlements, not to replace national fiat currencies. It enables immediate, transparent transactions, bypassing traditional financial intermediaries.
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