Andy Schectman, president of Miles Franklin, shared his thoughts on de-dollarization, going into detail about Project mBridge, a cross-border payment system developed in part by the Bank of International Settlements.
Schectman also spoke about how Project mBridge relates to the Unit, which he said is a BRICS settlement currency.
“(New Development Bank President Dilma Rousseff) came out and publicly said that there has been an agreement in principle to use a new settlement currency called the Unit, which will be backed 40 percent by gold and 60 percent by the local currencies in the BRICS union — the BRICS+ countries. That gold will be in the form of kilo bars and will be deliverable or redeemable for those entities,” he told the Investing News Network.
Continuing, Schectman highlighted what he believes is a key feature of the Unit.
“The basket of gold and the basket of currencies will be minted in the member countries … it will be put into an escrow account, taken off the ledger so to speak — off of their balance sheet and put onto the mBridge ledger, and held in an escrow account in their own borders. It doesn’t need to be sent to a central authority,” he said.
When asked how gold might perform as these initiatives advance, Schectman was candid.
“I think gold goes higher than anyone ever thinks possible,” he said on the sidelines of the Rule Symposium. “I think it never comes back down, because it’s pegged to a new system. How high that is, I have no idea. But … much higher than people think possible would be my truthful answer.”
Watch the interview above for more on what Schectman sees coming in 2024 and beyond, as well as how to position.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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