I don't understand the economics behind it but if it proves to be far more stable than the dollar, then people might actually use it. All I know is that currencies these days are floating after we abandoned the gold-standard. It's been several months that we are hearing about this move to return the standard back, there are rumors about different countries trying to get their gold back.
It's probably not just China that would launch a gold-backed crypto and they might do it all at the same time while the dollar is in disarray for maximum effect.
It's probably not just China that would launch a gold-backed crypto and they might do it all at the same time while the dollar is in disarray for maximum effect.
China's plan was to accumulate precious metals and other capital goods required for manufacturing quietly using the fiat system until such a time as they had acquired enough gold to launch a gold and oil backed yuan. This has been the plan for some time. China has massive undeclared gold stores. The additional element of crypto I think was something they decided to hybridize this strategy with at a later point. IMO economically speaking, this strategy is a lot more powerful in crypto form. This is something that MUST be addressed immediately if the USA is to be prepared. IMO the USA should have been embracing crypto long ago, but unfortunately they are too worried about chasing pennies of tax revenue to support such advancements.
That's an ambitious move for China, but I think it has a great advantage to them. They will be pumping more fiat to crypto, and finally, become the pioneer and dominate of this system.US must act fast or we don't know, they are preparing something to counter this China's strategy.
