Gold has been accepted as cash for hundreds of years and doesn’t undergo from geopolitical or inflationary dangers, not like fiat forex.
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Gold-backed stablecoins will outcompete US dollar-pegged options worldwide on account of gold’s inflation-hedging properties and minimal volatility, in accordance with Bitcoin (BTC) maximalist Max Keiser.
Keiser argued that gold is extra trusted than the US greenback globally and mentioned governments of overseas nations with an adversarial relationship to the USA wouldn’t settle for dollar-pegged stablecoins. The BTC maximalist added:
“Russia, China, and Iran are usually not going to simply accept a US greenback stablecoin. I predict they’ll counter the USD stablecoin with a Gold one. China and Russia have a mixed 50,000 tonnes of Gold — greater than what’s reported.”
The potential for gold-backed stablecoins to outcompete dollar-pegged tokens in worldwide markets would upend plans to extend US dollar dominance through stablecoins proposed by US lawmakers.
Supply: Max Keiser
Associated: Gov’t can realize gains on gold certificates to buy Bitcoin: Bo Hines
Gold-backed stablecoins fulfill the unique promise of USD?
Stablecoin issuer Tether launched a gold-backed stablecoin referred to as Alloy (aUSD₮), backed by Tether’s XAU₮ — a token that gives a paper declare to bodily gold — in June 2024.
According to PointsVille founder and former VanEck government Gabor Gurbacs, “Tether Gold is what the greenback was earlier than 1971.”
“XAU₮ is up 15.7% year-to-date, whereas the broad crypto market is within the crimson. Foundations and companies ought to hedge their holdings with XAU₮,” the chief wrote in a March 19 X post.
XAUT is now at all-time highs following a historic rally within the gold market. Supply: Gabor Gurbacs
US policymakers have a special concept
United States Treasury Secretary Scott Bessent mentioned that the Trump administration would deal with utilizing dollar-pegged stablecoins to protect the dollar’s reserve currency status and guarantee US greenback hegemony in international monetary markets.
Talking on the March 7 White Home Crypto Summit, Bessent indicated that this stablecoin regime can be a prime precedence for the administration.
Federal Reserve governor Christopher Waller additionally voiced related feedback and expressed assist for utilizing stablecoins to prop up the US dollar earlier than Bessent made the remarks on the summit.
US lawmakers have additionally launched a number of stablecoin payments to determine a complete regulatory framework for tokenized fiat belongings, together with the Stable Act of 2025 and the GENIUS stablecoin bill.
Journal: Unstablecoins: Depegging, bank runs and other risks loom
