The financial landscape is witnessing a significant evolution as the debate around stablecoins intensifies. Recently, Bitcoin maximalist Max Keiser asserted that gold-backed stablecoins are poised to outcompete US dollar-pegged alternatives globally. He argues that this is due to gold’s inflation-hedging properties and inherent stability, qualities that make it a trusted asset in times of economic uncertainty.
Keiser pointed out that countries like Russia, China, and Iran, which maintain adversarial relations with the United States, are unlikely to accept dollar-backed stablecoins. Instead, he predicts that these nations will respond by adopting gold-backed alternatives. “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,” he stated.
The rise of gold-backed stablecoins poses a potential challenge to the US government’s strategy of extending dollar dominance through stablecoins. This strategy was recently discussed amongst US lawmakers, indicating a strong push for regulatory frameworks centered around the dollar.
Gold-Backed Stablecoins: The Original Promise of USD?
In June 2024, Tether launched a gold-backed stablecoin called Alloy (aUSD), intended to fulfill what many consider the original guarantee that the US dollar once provided. According to experts, such as PointsVille founder Gabor Gurbacs, Tether Gold represents a version of the dollar prior to its abandonment of the gold standard in 1971.
Year-to-date, Tether Gold (XAU€) has seen a growth of 15.7%, diverging from the broader crypto market’s negative trends. Gurbacs recommended that businesses and foundations consider hedging their portfolios with such assets.
US Policymakers’ Perspective
In stark contrast, US Treasury Secretary Scott Bessent has stated that the current administration is focused on leveraging dollar-pegged stablecoins to safeguard the US dollar’s status as the world’s reserve currency. During the March 7 White House Crypto Summit, Bessent emphasized that this initiative would be a top priority.
Similarly, Federal Reserve governor Christopher Waller has expressed support for the use of stablecoins as a means to bolster the US dollar in the global financial markets. Additionally, several stablecoin legislation proposals are in circulation, including the Stable Act of 2025 and the GENIUS stablecoin bill, aimed at establishing a regulatory framework for tokenized fiat assets.
As the debate continues, it remains to be seen if gold-backed stablecoins will indeed outpace their US dollar-pegged counterparts. The potential shift in trust and usage could redefine the future of digital assets and currency stability on a global scale.
