Gold Stablecoin: A Serious Challenger to Dollar Dominance in the Crypto World
Gold-backed stablecoins are increasingly gaining attention as a promising alternative to stablecoins pegged to the US Dollar (USD).
Several analysts and crypto industry players believe that gold stablecoins have the potential to outperform USD stablecoins in the global market.
Advantages of Gold-Backed Stablecoins
According to information cited from Coinvestasi, Max Keiser, a well-known Bitcoin advocate, stated that gold holds greater global trust compared to the US dollar.
He highlighted that countries such as Russia, China, and Iran might be more willing to adopt gold-backed stablecoins rather than those tied to the USD.
Keiser also emphasized that the value of the US dollar continues to erode due to inflation, whereas gold tends to retain its value over time.
Tether’s Gold Stablecoin Initiative
In response to the growing interest in gold-backed stablecoins, Tether launched Alloy (aUSD₮) in June 2024.
This stablecoin is backed by Tether Gold (XAU₮), which offers claims on physical gold. Alloy is designed to replicate the stability and value of gold in a digital format, providing an alternative for those seeking a hedge against market volatility.
Industry Perspective on Gold Stablecoins
Gabor Gurbacs, founder of PointsVille and former VanEck executive, compared Tether Gold to the US dollar before 1971, referring to the era when the dollar was backed by gold reserves.
He noted that XAU₮ has increased in value by 15.7% since the beginning of the year, demonstrating strong performance compared to many other crypto assets that have been experiencing a downtrend.
US Push for Dollar-Pegged Stablecoins
Meanwhile, the United States government continues to promote the use of USD-pegged stablecoins in an effort to maintain its status as the world’s reserve currency.
US Treasury Secretary Scott Bessent emphasized that this strategy remains one of the key focuses of the current administration.
Similar support was echoed by Federal Reserve Governor Christopher Waller, who sees stablecoins as a tool to strengthen the dollar’s dominance in international financial markets.
Conclusion
The rise of gold-backed stablecoins reflects shifting dynamics within the crypto ecosystem and the global financial landscape.
As interest grows in assets that offer value stability, gold stablecoins may emerge as a preferred option for investors and nations seeking alternatives to US dollar dominance.
However, their adoption and success will largely depend on market acceptance and the regulatory frameworks governing their use across different jurisdictions.
