The Political Economy of Digital Nature-Based Currencies

Abstract

A digital, nature-based currency (NBDC) is backed by real value and forms the basis of a genuinely sustainable, nature-based economy. The NBDC and the underlying technologies offer a new perspective on how digital resilience can be built in ecological contexts. It shows how an NBDC can function as a model. As natural capital accounting becomes the fundamental asset for new monetary systems, blockchain's inherent trust and sequential accounting capabilities are essential for monitoring and verifying the state of nature and its corresponding financial value. In addition, the legal anchoring of rights of nature and nature-based solutions are essential conditions for establishing an NBDC. Given the reservoir of natural resources in the BRICS countries, the project seems predestined for them. BRICS countries could be pioneers in establishing NBDCs. The chapter presents an innovative approach to the design of an NBDC.