Max Keiser Predicts Gold-Backed Stablecoins Will Topple Dollar-Pegged Coins

According to Keiser, nations such as Russia, China, and Iran are unlikely to adopt dollar-backed stablecoins. Instead, he believes they may turn to gold-backed alternatives, possibly even issuing their own. Keiser claims that China and Russia alone may control more than 50,000 tonnes of gold, a figure that far exceeds official estimates. He sees this massive reserve as the foundation for a new wave of gold-linked digital currencies that could bypass the U.S.-centric financial system. Keiser shared his thoughts on X:

The appeal of gold-backed stablecoins lies in their ability to merge the historical security of gold with the convenience and speed of blockchain technology. These digital tokens, backed by physical gold reserves, aim to provide a modern hedge against inflation while offering a familiar and trusted asset to investors who may be skeptical of fiat-backed coins. One example of this trend came in June 2024, when Tether launched Alloy (aUSD₮), a stablecoin backed by Tether Gold (XAU₮), which is directly tied to physical gold.

Gabor Gurbacs, founder of PointsVille and a former executive at VanEck, compared Tether Gold to the U.S. dollar before it was unpegged from gold in 1971. He highlighted that XAU₮ had appreciated over 15% year-to-date, outperforming much of the broader crypto market, including many dollar-backed stablecoins. This performance is seen by many as evidence of a growing investor appetite for alternatives to fiat-based digital currencies.

While U.S. policymakers are working to strengthen the dollar’s dominance in the digital era, the rise of gold-backed alternatives presents a growing challenge. Treasury Secretary Scott Bessent has stated that the current administration views dollar-pegged stablecoins as vital tools to preserve the U.S. dollar's status as the world’s reserve currency. Efforts are underway to integrate these stablecoins into the traditional financial system, but Keiser and others believe that for many countries and investors, the dollar's influence is no longer as persuasive as it once was.

The growing interest in gold-backed stablecoins reflects a broader shift in how value is being perceived and secured in a digital economy. Dollar-based stablecoins like Tether (USDT) and USD Coin (USDC) still dominate the market in terms of volume and adoption. However, gold-backed alternatives are gaining traction, particularly in jurisdictions where trust in the dollar is low or where gold plays a larger cultural or economic role.

Despite their promise, gold-backed stablecoins still face hurdles. These include regulatory uncertainty, limited liquidity compared to fiat-backed coins, and the logistical complexity of storing and auditing physical gold. Moreover, widespread adoption will require not only technological infrastructure but also public confidence and strong governance.

Still, Keiser’s forecast signals a potential turning point. As investors and nations alike look for more stable and politically neutral assets, gold-backed stablecoins could become a powerful force in the evolving financial ecosystem. Whether they can truly outcompete dollar-backed tokens remains to be seen, but their rise reflects a growing desire for alternatives in a rapidly changing world.