It’s more robust and less efficient. Transaction costs—and opportunities for middlemen—will increase. But the chances that your country’s economy is entirely shut down on the whim of one man in Washington is reduced.
> the BRICS system is based on honoring multiple currencies
The BRICS system is nonsense, as evidenced by basically nobody using it beyond a totem amount. Both the PBoC and RBI have superior settlement systems they could open up if they wanted to. Neither does because neither wants an unrestricted capital account.
I agree that it has been unused but disagree that it will always go unused. I think that China is using the US current global antagonism to encourage others to participate.
> disagree that it will always go unused. I think that China is using the US current global antagonism to encourage others to participate
China is in a border dispute with another founding member of the BRICS. Another is in the Western Hemisphere and will become a proxy-financial frontline.
There will be yuan, Euro and dollar payment rails. (If the EU had failed to unify, they’d be getting divided up between Washington and Moscow again.)
It’s more robust and less efficient. Transaction costs—and opportunities for middlemen—will increase. But the chances that your country’s economy is entirely shut down on the whim of one man in Washington is reduced.
> the BRICS system is based on honoring multiple currencies
The BRICS system is nonsense, as evidenced by basically nobody using it beyond a totem amount. Both the PBoC and RBI have superior settlement systems they could open up if they wanted to. Neither does because neither wants an unrestricted capital account.