Anchoring digital tokens to gold’s intrinsic value, this model sidesteps the volatility of speculative cryptocurrencies and the inflationary risks of government-issued currencies. The result is a stablecoin engineered for trust, where stability isn’t promised by code or institutions — it’s bolstered by tangible scarcity and blockchain’s unyielding transparency.
In 2022 alone, billions in value evaporated when supposedly “secure” stablecoins lost their pegs, meaning their market prices diverged significantly from their intended 1:1 ratio with an underlying asset — prompting an unsettling question: Can digital assets ever be genuinely stable without demonstrable and independently audited backing?
By linking digital tokens directly to physical gold, they sidestep the speculative risks of cryptocurrencies and the inflationary pitfalls of government-issued money. Blockchain-enabled gold tokenizationBlockchain technology removes the traditional obstacles to gold ownership by enabling fractional digital ownership and global trading without intermediaries. Physical gold stored in regulated vaults is digitized into tokens, each representing a precise fraction of the underlying asset.
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Author / Journalist: Cointelegraph by William Campbell
The story "The gold standard is back — Stablecoins need to rethink what ‘backing’ really means" has 1021 words across 56 sentences, which will take approximately 5 - 9 minutes for the average person to read.
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