In recent years, gold-backed stablecoins have started to compete with dollar-pegged counterparts due to their low volatility and inflation-hedging properties. This article examines different perspectives on the issue.
Max Keiser: Gold vs. Dollar
Bitcoin maximalist Max Keiser argues that gold-backed stablecoins could outcompete dollar-pegged alternatives globally due to gold's inflation-hedging properties and low volatility. According to Keiser, nations like Russia and China, with significant gold reserves, are more likely to favor gold tokens over dollar ones.
Benefits of Gold-Backed Stablecoins
Recently, Tether launched a gold-backed stablecoin, following the success of XAU₮, now at all-time highs. PointsVille founder Gabor Gurbacs claims this token embodies the reliability of the pre-1971 dollar and suggests businesses hedge with it.
US Plans for Stablecoins
Meanwhile, discussions in the US focus on supporting dollar-pegged stablecoins to reinforce its status as the world's reserve currency. Treasury Secretary Scott Bessent and Federal Reserve governor Christopher Waller both back the idea of dollar dominance in global financial markets.
Gold-backed stablecoins present an intriguing alternative to traditional dollar options, providing inflation protection. At the same time, the US supports dollar-pegged stablecoins to maintain financial influence. Only time will tell which approach will prove more successful long-term.
