These are great questions. I can't speak about what BRICS needs to do, but a few US states have already started addressing these questions. Here's what's happening in Texas....

• Who holds the gold? Texas has built a Gold Depository to hold gold deposited by individuals and other depositors.

• How do you ensure gold is fairly distributed across the country? This should be done in each state. I don't trust the FED or any other state's governing body. We have a bill to create a gold back currency that can be used within Texas and it has strong support.

• What measures are in place to prevent centralization of all the gold? Hopefully we've learned our lesson about central banks. They will always try to stack the deck in their favor.

• What are the economic consequences if large amounts of gold suddenly go missing, or, found to be "fools gold"? All gold bullion deposited are tested and verified before being allowed to be deposited.

• Who audits the gold vaults? Who audits the auditors? I don't know how Texas handles that, but it must be fully transparent to the depositors.

• What measures will be in place to prevent banks and vaults from failing to have an adequate amount of gold to back the currency? Banks should have nothing to do with this and the current banking laws are null and void in this context.

• How is this currency going to be established? Will it be paper backed by gold, or digitized? Or both? Texas wants to issue gold backed paper currency state wide. I assume anyone would rather have money backed by gold than any type of fiat. We should avoid any form of digital representation of this money lest we end up recreating the COMEX.

• If Digitized, how do we know they can't program the currency to be stolen from us by our governments? No digital versions of the gold backed currency.