I argued that the dollar remains central while countries hedge through gold, non-USD trade, and payment rails outside SWIFT. I praised UPI and said dollar-backed stablecoins seem like a bad long-term idea for India.
On 2023-01-16, I noted a reported Iran–Russia plan for a gold-backed stablecoin. I speculated that if it gained traction, it could mark the start of a new economic order everywhere, and wondered why the global press was giving it little attention. This connects to my earlier, tentative consideration of a gold-backed stablecoin, though that idea concerned unutilized household gold and a possible yield.
I said Iran and Russia were to issue a new stablecoin backed by Gold.
I described three forms of hedging away from the dollar: buying gold, trading in non-USD pairs, and building payment rails outside SWIFT.
I said UPI has been incredible for India.
I said dollar-backed stablecoins seem like a bad idea long-term for India, and credited the Modi government and regulators for getting this right despite pressure.
I floated, without endorsing it, the possibility of a gold-backed stablecoin that could monetize unutilized household gold and return a yield. I said I did not know enough to speak confidently and invited others’ thoughts; I gave no implementation details.