Max Keiser Predicts Gold-Backed Stablecoins Will Surpass Dollar Alternatives in Global Markets

Gold-backed stablecoins are set to outperform their USD-pegged counterparts in global markets, according to Max Keiser, a TV host and founder of Heisenberg Capital.

He believes that the precious metal is held in higher regard by governments. Additionally, nations that are hostile to the United States are unlikely to embrace a digital asset tied to the American currency.

«Countries like Russia, China, and Iran will not endorse a dollar-based stablecoin. I predict they will respond with a gold-backed equivalent. Together, China and Russia possess 50,000 tons of gold—this figure is higher than reported,» noted Keiser.

A stablecoin backed by precious metals could effectively «track inflation,» while USD assets are «certainly» losing purchasing power over time, according to the entrepreneur.

«Bitcoin is deflationary, yet highly volatile. Gold tracks inflation and remains relatively stable. Why wouldn’t Russia, China, Saudi Arabia, and Iran utilize this?» Keiser added.

In the summer of 2024, Tether introduced the aUSDT token, which is backed by Tether Gold (XAUT) as part of its Alloy «pegged assets» series. This coin grants ownership rights to physical gold.

Recently, Gabor Gurbacs, founder of PointsVille and former top executive at VanEck, stated that the «gold» stablecoin is akin to what the US dollar was before 1971.

«Since the beginning of the year, XAUT has surged by 15.7%, while the broader cryptocurrency market is in decline. Funds and companies should hedge their assets using XAUT,» he added.

It is worth noting that in March, experts pointed out the persistent status of gold as a safe-haven asset, while Bitcoin continues to behave like high-risk tech stocks during periods of market volatility.