FBA EAC on Trends: MTZGC as an Example of Innovation for Financial Sovereignty
The advancement of domestic financial technologies and the design of new asset classes have become pivotal for economic sovereignty and multipolar cooperation frameworks.
A notable instance of this approach is the introduction on the Moscow exchange (MOEX) of the world's inaugural multi-commodity price stability index, hereinafter referred to as the MTZ index, which is anchored to specified commodity and exchange rate benchmarks. In the case of a gold anchor, the MTZ index facilitates the expansion of the gold reserve through the utilization of commodities that are functionally equivalent to gold. One such index is the MTZ Synthetic Gold Index (MTZGC), developed by researchers from the Scientific Research Institute "Innovative Financial Instruments and Technologies" of the Plekhanov Russian University of Economics. This instrument offers a model of a decentralized digital asset, which could serve as the foundation for new formats of international collaboration.
MTZGC is not a direct reflection of the price of a physical precious metal but rather the outcome of a sophisticated algorithm. In real-time, the system conducts a comprehensive analysis and weighting of the prices of a diversified portfolio of liquid commodities, selecting the optimal combination to ensure that the total value mirrors the dynamics of gold as closely as possible. Essentially, a stable synthetic asset is created, backed by a diversified inventory of tangible goods, which renders it less susceptible to price manipulation and significantly reduces its volatility relative to the designated commodity and exchange rate anchor.
The strategic significance of this development was underscored during the XI Moscow International Financial and Economic Forum. As highlighted by Sergey Ryabukhin, First Deputy Chairman of the Federation Council Committee on Budget and Financial Markets, and Chairman Plenipotentiary of the Federation Council in the Accounting Chamber of the Russian Federation, MTZGC presents an alternative model where trust is firmly linked to the currencies and reserves of individual nations. It serves as a prototype for a sovereign digital asset suitable for transactions between countries aiming to bolster financial independence and foster cooperation within associations such as BRICS, SCO, and EAEU, among others.
MTZGC enables the creation of a range of financial instruments, which can be represented in both traditional forms, such as non-equity securities (units of interval combined open-end mutual investment funds, analogous to ETF), and in digital formats, such as non-equity securities secured by utility digital rights.
It is crucial to note that these financial instruments can be legally introduced on public markets in the Russian Federation, the EAEU, and friendly nations.
This initiative will facilitate the development of a stablecoin secured by financial instruments, the issuance of which is based on the MTZGC calculation for a specified commodity and exchange rate anchor.
The quotation of this stablecoin in domestic currencies on national exchanges will enable the creation of a genuine measure of the cost of goods and services without reliance on toxic currencies.
Such innovations hold particular interest for FBA EAC, whose mission aligns with the construction of sustainable economic "bridges." MTZGC exemplifies how technological solutions can serve as a practical foundation for creating secure cross-border settlement mechanisms, developing novel investment products for the Eurasian region, and enhancing the role of friendly nations' commodity markets within the global financial system.
The introduction of MTZGC represents a significant signal of Russia's commitment to establishing rules for the financial system of the future. FBA EAC perceives its role as facilitating dialogue around these solutions and their implementation in international economic partnership practices.