The New Currency War: Gold-Backed Stablecoins vs. the US Dollar
Gold-backed stablecoins could soon outperform their US dollar-pegged counterparts in global markets, driven by gold’s inflation-hedging properties and historical reputation for stability, according to Bitcoin maximalist and media personality Max Keiser. In a recent statement, Keiser emphasized that gold holds greater global trust than the US dollar — particularly among nations with strained relations with the United States. He argued that countries like Russia, China, and Iran are unlikely to embrace dollar-denominated stablecoins due to political tensions, and would instead pivot toward alternatives backed by gold. Also read: Stablecoin Boom: 53% Surge in Active Wallets Signals Massive Adoption “Russia, China, and Iran are not going to accept a US dollar stablecoin,” Keiser said. “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.” Keiser’s comments come amid a growing debate about the role of stablecoins in the evolving global financial order. US policymakers have long viewed USD-pegged stablecoins as a strategic instrument to reinforce the greenback’s dominance. However, Keiser’s forecast suggests that this strategy could face a formidable challenge from digital assets tethered to gold. Tether Alloy and the Return to Pre-1971 Monetary Standards The idea of gold-backed stablecoins gained momentum in June 2024 when leading stablecoin issuer Tether introduced Alloy (aUSD₮) — a synthetic dollar backed by its existing token XAU₮, which represents claims on physical gold reserves. The move was seen by some industry insiders as a return to the gold standard era, abandoned by the United States in 1971. Also read: Fed’s Waller Champions Stablecoins as Key to Future Payments Gabor Gurbacs, former VanEck executive and founder of PointsVille, compared Tether’s XAU₮ to the dollar’s historical foundation. Not in the same league as Bitcoin, but here you go. This should catch up to Gold ETFs over time. The key is to pick the right vaults to back assets. This one is Swiss vaulted. Tether Gold (XAUT) is what the Dollar used to be before 1971. https://t.co/4V61EpTYiA— Gabor Gurbacs (@gaborgurbacs) March 22, 2025 “Tether Gold is what the dollar used to be before 1971,” Gurbacs posted on X on March 19. “XAU₮ is up 15.7% year-to-date, while the broad crypto market is in the red. Foundations and businesses should hedge their holdings with XAU₮.” XAU₮ recently hit an all-time high following a historic rally in the gold market, further bolstering its appeal as a stable asset in uncertain economic conditions. Washington’s Push for Dollar-Based Digital Dominance Despite the rising interest in gold-backed alternatives, US officials remain committed to using dollar-pegged stablecoins to maintain the dollar’s supremacy. Also read: HUD Eyes Stablecoins: The Future of Government Grant Payments? Speaking at the White House Crypto Summit on March 7, Treasury Secretary Scott Bessent declared that the Trump administration would prioritize the deployment of dollar-based stablecoins to preserve the dollar’s status as the world’s reserve currency. Federal Reserve governor Christopher Waller echoed these sentiments, bringing attention to the importance of a robust US-led stablecoin ecosystem to support international demand for the dollar. Also read: Understanding Pax Gold: A Digital Gold Alternative To advance this agenda, lawmakers have introduced several bills aimed at building a comprehensive regulatory framework for fiat-backed digital assets — including the Stable Act of 2025 and the bipartisan GENIUS Stablecoin Bill. A New Currency Cold War? Keiser’s remarks reflect a deeper geopolitical shift as rival nations seek to insulate themselves from US monetary policy by adopting alternative financial technologies. A surge in adoption of gold-backed stablecoins could weaken the United States’ ability to project soft power through the dollar — a prospect that alarms many in Washington. Whether the market chooses gold or the dollar may ultimately depend on trust, transparency, and global political dynamics — but one thing is clear: stablecoins are no longer just a technological curiosity. They are fast becoming tools of economic strategy and international influence. Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations. View all posts