Gold has been accepted as money for thousands of years and does not suffer from geopolitical or inflationary risks, unlike fiat currency.
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Gold-backed stablecoins will outcompete US dollar-pegged alternatives worldwide due to gold’s inflation-hedging properties and minimum volatility, according to Bitcoin (BTC) maximalist Max Keiser.
Keiser argued that gold is more trusted than the US dollar globally, and said governments of foreign nations with an adversarial relationship to the United States would not accept dollar-pegged stablecoins. The BTC maximalist added:
“Russia, China, and Iran are not going to accept a US dollar stablecoin. I predict they will counter the USD stablecoin with a Gold one. China and Russia have a combined 50,000 tonnes of Gold — more than what is reported.”
The potential for gold-backed stablecoins to outcompete dollar-pegged tokens in international markets would upend plans to extend US dollar dominance through stablecoins proposed by US lawmakers.
Source: Max Keiser
Related: Gov’t can realize gains on gold certificates to buy Bitcoin: Bo Hines
Gold-backed stablecoins fulfill the original promise of USD?
Stablecoin issuer Tether launched a gold-backed stablecoin called Alloy (aUSD₮), backed by Tether’s XAU₮ — a token that provides a paper claim to physical gold — in June 2024.
According to PointsVille founder and former VanEck executive Gabor Gurbacs, “Tether Gold is what the dollar used to be before 1971.”
“XAU₮ is up 15.7% year-to-date, while the broad crypto market is in the red. Foundations and businesses should hedge their holdings with XAU₮,” the executive wrote in a March 19 X post.
XAUT is now at all-time highs following a historic rally in the gold market. Source: Gabor Gurbacs
US policymakers have a different idea
United States Treasury Secretary Scott Bessent said that the Trump administration would focus on using dollar-pegged stablecoins to protect the dollar’s reserve currency status and ensure US dollar hegemony in global financial markets.
Speaking at the March 7 White House Crypto Summit, Bessent indicated that this stablecoin regime would be a top priority for the administration.
Federal Reserve governor Christopher Waller also voiced similar comments and expressed support for using stablecoins to prop up the US dollar before Bessent made the remarks at the summit.
US lawmakers have also introduced several stablecoin bills to establish a comprehensive regulatory framework for tokenized fiat assets, including the Stable Act of 2025 and the GENIUS stablecoin bill.
Magazine: Unstablecoins: Depegging, bank runs and other risks loom
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Cointelegraph by Vince Quill