Countries are going to remove #USD from their international transactions. Now the challenge is to choose a currency for transactions between two countries. For example #China and #Russia should debate together to select #Ruble or #Yuan for their transactions. This is a problem. Not a small problem. Why do not countries use #gold for transactions?

@RezaHoss if I'm not mistaken, BRICS members plan on creating a new currency, backed by gold and other rare earth elements.

@hirad
Why not gold itself? And a currency backed via gold?

@RezaHoss There are many reasons for the use of currencies. Ease of use, security, and the most relevant reason the fact that in vast majority of transactions are electronic and via wire transfer.
So the solution is having a currency backed by a valuable commodity. Which is usually gold. That's how it used to be in the past for almost all currencies around the world.

@hirad
For people's use yes, but for transaction between countries gold is better. When a country send one ship oil from a continent to another one, sending a consignment of gold has no difficulty.

@RezaHoss Actually its the exact opposite. Its nearly impossible to pay in cash or any other physical form of currency in such large transactions. One reason being that most of such transactions are financed and no money is transferred directly.
That's why US can impose sanctions (among other reasons). Because money doesn't change hand. In many cases it doesn't even change country.

@RezaHoss
I don't know how much you're aware of gold standard. But gold backed currency has the strength of gold, but without selling off your wealth for import. That's why it was so popular.
Cuz the very first outcome of using actual gold is that weaker countries become weaker and the rich country become richer.

@hirad
Why do weaker countries become weaker and the rich country become richer? If my money is in USA or other countries, they can block my money if they want. This is not a good event.