🚨 BRICS Developing Gold-Backed Stablecoin ‼️
Why It’s Interesting:
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Since the Bretton Woods Agreement, the US dollar is no longer backed by gold, allowing the US to significantly increase its monetary supply, resulting in well-known inflationary consequences.
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This has led to a weakening dollar and diminishing global trust in it, creating opportunities for other countries to challenge its dominance in international trade, especially in primary energy and materials, outside of American jurisdiction.
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BRICS nations are moving towards creating a gold-backed stablecoin. Major Russian banks, including Sberbank, have already initiated steps in this direction. In December 2022, Sberbank launched a cryptocurrency stablecoin based on gold. Additionally, Russia has introduced “gold checking accounts,” enabling the transfer of digital grams of gold between accounts.
This concept combines the stability of gold with the liquidity of cryptocurrency, making it well-suited for trade. However, the practical use of such a gold-backed coin (GBC) for everyday transactions remains uncertain due to limited gold reserves and industrial demand for the metal.
Nevertheless, a GBC could serve as a stable, less volatile alternative to non-backed cryptocurrencies for international transactions and investments like countries bonds.
What do you think? Would you trust a gold-backed coin?
