Stablecoins on Shaky Foundations: Why Gold May Offer a Real Alternative
- kerencollins4
- 26 בספט׳
- זמן קריאה 3 דקות
עודכן: 29 בספט׳
I don’t think anyone will fall off their chair if I say that none of today’s so-called stablecoins are actually pegged to anything truly stable.
The US dollar, which the crypto industry has chosen as its anchor of stability, has lost purchasing power against almost every major asset class. Gold, for example, rose 27% last year and has already gained about 20% this year.
So why does this entire sector continue to peg itself to the dollar? It’s a good question.
When I ran the numbers myself, my first thought was that there is no real economic justification for tying a “stable” currency to a fiat currency that is constantly losing value and whose global credibility is at a low point.
So What’s the Solution?
In my view, the solution lies in shifting perspective.
Instead of buying gold individually as a hedge, what if we could base our entire purchasing power on gold itself? That way we would benefit from genuine stability, not a marketing illusion.
What do I mean?
It’s true that gold has practical challenges. It is less convenient to use and more difficult to store and manage. But imagine if you could have your salary deposited directly into a gold-backed account and then pay with it using a Visa card.
In that case, gold would become liquid just like fiat currency, perhaps even more so.
And when that happens, you get real stability. Not theoretical, not promotional, but measurable.
How It Would Work in Practice
Salary is deposited directly into a gold account
Payments are made with the gold card when prices are high
When the gold price dips, you convert temporarily into fiat currency
In this way, you adapt daily usage to market fluctuations
This solution does require keeping a close eye on gold prices. It can be cumbersome, but under current conditions it may be the lesser evil.
Gold rises? Pay with it. Gold drops? Wait before purchasing, or use fiat.
Either way, once you transfer most of your assets into gold, you enjoy an annual appreciation of around 25%.
The infrastructure already exists, and the numbers support it.
So-called “stablecoins” pegged to the dollar are not really stable, they are simply familiar. Real stability requires a real asset.
Gold was money long before the dollar was born, and it will remain so long after the dollar is gone.
The Problem With Private Stablecoins
Another core issue with private stablecoins is the lack of effective oversight of the companies issuing them. The most prominent example is Tether, the issuer of USDT. Although it is the most widely used stablecoin on the market, Tether is incorporated in El Salvador (previously in the British Virgin Islands), jurisdictions known as regulatory havens, and it faces no meaningful government supervision or transparent financial regulation.
The company does publish monthly reports, but it does not undergo full annual audits and fails to provide clear information on the location or liquidity of its reserves. It also avoids disclosing where its reserves are held, partly to limit exposure to regulatory action or the risk of a bank run.
Such an operational model could turn overnight into a systemic threat to the entire crypto market. Any loss of public trust in the stability of reserves could trigger a rapid collapse, as we saw with TerraUSD. The fact that billions of dollars are controlled by a private, opaque, and unregulated entity shows why private stablecoins cannot be considered a safe or responsible alternative to traditional money.
The Real Question
In light of all this, the question is no longer whether gold-based currencies should replace dollar-pegged stablecoins.
The question is when we will stop building on crumbling foundations when a solid and accessible alternative is already available.
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