Bitcoin advocate Max Keiser has stirred discussions by predicting that gold-backed stablecoins could surpass USD-pegged alternatives in global markets. He argues that gold’s reputation as a reliable inflation hedge and its low volatility make it a more trusted asset than the U.S. dollar, particularly among nations with strained relations with the United States.
Countries like Russia, China, and Iran, he suggests, are unlikely to accept USD-backed stablecoins and may instead favor gold-backed alternatives.
Keiser highlights that China and Russia collectively hold significant gold reserves, estimated at over 50,000 tonnes, which could support the development of gold-backed digital currencies. This shift could challenge the U.S.’s financial dominance, which has long been bolstered by the dollar’s status as the world’s reserve currency.
The introduction of Tether’s Alloy (aUSD₮), a gold-backed stablecoin, exemplifies this trend. Alloy is backed by Tether Gold (XAU₮), a token linked to physical gold, and has gained traction as a modern alternative to fiat-backed assets.
Supporters of gold-backed stablecoins argue that they offer a more stable and inflation-resistant option compared to USD-pegged counterparts. Former VanEck executive Gabor Gurbacs likened Tether Gold to the pre-1971 U.S. dollar, which was backed by gold. He noted that XAU₮ has outperformed much of the broader crypto market, appreciating by 15.7% year-to-date.
In contrast, U.S. policymakers remain focused on preserving the dollar’s global dominance. Treasury Secretary Scott Bessent has emphasized the importance of USD-pegged stablecoins in maintaining the dollar’s reserve currency status. Federal Reserve Governor Christopher Waller echoed this sentiment, highlighting the role of stablecoins in reinforcing dollar dominance.
The debate over gold-backed versus USD-backed stablecoins underscores the evolving dynamics of the global financial system. As nations explore alternatives to the dollar, the rise of gold-backed digital currencies could reshape the landscape of international finance.
Shogun Lin
