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Gold’s Enduring Trust and Stability
Gold has been trusted as money for thousands of years and does not suffer from geopolitical or inflationary risks like fiat currency.
Global Acceptance Challenges for USD Stablecoins
Keiser notes that countries like Russia, China, and Iran are unlikely to accept USD-pegged stablecoins due to geopolitical tensions. He suggests these nations might develop their own gold-backed digital currencies, leveraging their substantial gold reserves.
Tether’s Gold-Backed Stablecoin: Alloy (aUSD₮)
In June 2024, Tether introduced Alloy (aUSD₮), a stablecoin backed by physical gold through its XAU₮ token. This move aims to offer a stable digital asset less susceptible to inflation and currency fluctuations.
U.S. Strategy to Maintain Dollar Dominance
U.S. Treasury Secretary Scott Bessent announced plans to use dollar-pegged stablecoins to uphold the dollar’s reserve currency status. This strategy seeks to ensure U.S. dollar hegemony in global financial markets amid the rise of alternative digital currencies.
