Gold-Backed Stablecoins Poised to Challenge Dollar-Pegged Alternatives, Says Expert
He states that nations with strained relations to the U.S., such as Russia, China, and Iran, would reject dollar-backed tokens in favor of those backed by gold. Keiser pointed out that these countries, holding large amounts of gold reserves, are unlikely to adopt US dollar stablecoins.
This shift towards gold-backed tokens could significantly disrupt the plans of U.S. lawmakers to solidify the dollars dominance in the digital asset space, particularly as countries like China and Russia continue to increase their gold holdings.
Meanwhile, Tethers introduction of a gold-backed stablecoin, Alloy (aUSD), further strengthens Keisers prediction. The stablecoin is pegged to Tethers XAU token, representing physical gold. This initiative aims to replicate the pre-1971 structure of the U.S. dollar, with some experts even advocating for it as a better hedge than traditional fiat currencies.
On the other hand, U.S. policymakers continue to push for dollar-backed stablecoins, viewing them as crucial in maintaining the U.S. dollars status as the global reserve currency. Treasury Secretary Scott Bessent emphasized the governments commitment to leveraging stablecoins to safeguard the dollars dominance, a sentiment echoed by Federal Reserve officials and lawmakers who are advocating for stablecoin legislation.
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Text source: Coindoo
