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The BRICS Digital Bank has developed a new digital currency as part of the UN Sustainable Development Goals.
On the eve of the 15th BRICS Unification Summit (22-24 August 2023 in South Africa), the BRICS Digital Bank issued the “BRICS Food Token”.
The total amount of emission is 19 billion tokens, which - at the initial cost of one token of $1 - is equivalent to $19 billion.
However, the bank will bring to the market 1.9 billion tokens per year.
This new BRICS cryptocurrency was created under the Food Security Cooperation strategy, which is in line with the 2021-2024 BRICS Action Plan for Agricultural Cooperation of the BRICS countries.
Head of the Project Implementation Unit (PIU) of BRICS Food Valeriy Otvetchikov briefly spoke about the concept of the projects "The main goal of the BRICS FOOD FP, within the framework of the UN sustainable development goals, is to eliminate hunger, ensure food security and improve nutrition, as well as promote the sustainable development of agriculture; digital transformation and transparency of the processes of access of the BRICS member countries to the food market; creation of an electronic ecosystem based on BRICS instruments within the framework of the program sustainable development; promoting global food security and the exchange of information and resources through the existing BRICS platforms".
The press officer of the BRICS Digital Bank Artur Zhukov, commenting on the release of the new Digital Financial Asset of the bank, said in particular:
"Given the global trends in the market of Digital Financial Assets, it was decided to create a token convenient for conducting foreign trade transactions.
In the next 10 years, the financial world may change beyond recognition. In many countries, CBDCs (central bank digital currencies) will be widely used. So far, there are 9 countries that are actually launching their own Central Bank Digital Currencies (CBDCs) and 14 countries that are piloting their own CBDCs. Also, cryptocurrencies and DFAs (digital financial assets) will be more widely used.
According to CoinMarketCap data for the last 10 years from 2013 to 2023. The cryptocurrency market has grown by more than 100,000%.
Among digital financial assets and tokenized digital instruments, project tokens related to manufactured products should be noted. These are tokens tied to metals, electricity or food.
Among large supermarket chains, the trend includes a loyalty program using bonus points in the form of native tokens.
Revolutionary changes are also observed in the banking sector.
Tokens, in the form of their own digital currencies, have begun to be used by some large banks. The most striking example is GP Morgan, which issued its own JPM Coin token.
On August 10, 2023, the BRICS Digital Bank released a new BFT (BRICS Food Token) digital instrument.
They want to use this token in foreign trade transactions between the BRICS and BRICS + countries for the supply of food and bottled drinking water.
In the second half of 2023, it is planned to conduct the first foreign trade transactions between the BRICS countries using the BFT token.
BRICS Food Token performs the following functions:
- It is used as a collateral instrument in foreign trade transactions.
BFT tokens serve as collateral for the Digital Bank for the buyer of products. Can be used instead of a letter of credit or a bank guarantee.
- Allows you to buy products for BFT tokens at a discount.
Wholesale buyers of food products can buy BFT tokens from the BRICS Digital Bank and use them to pay with food suppliers - food companies included in the BRICS Food Token project. This will allow customers to receive significant discounts.
- Is a digital crowdfunding tool on the blockchain to raise funds to fight child hunger.
The main problems of charity are the misuse of funds and the low level of trust in charitable organizations.
These problems will effectively help to solve such new crowdfunding tools as tokens on the blockchain. It is thanks to blockchain technology in the public domain that you can track each transaction and understand how many tokens were sold and where the collected funds went."
FG "Finam" analyst Leonid Delitsyn also expressed his opinion about the prospects of the BFT token:
"If testing is successful, the use of BFT will automate regular foreign trade transactions between the BRICS+ countries, primarily for the supply of food products.
More than 40% of the world's population lives in the BRICS countries, so we are talking about a huge market, which makes BFT a potentially attractive investment tool.
Once it becomes clear that the technical issues have been resolved, investment structures may allow BFT trading, which will then make the token available to private investors."