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Tether Revives Gold Standard with Digital Gold-Backed Stablecoin XAUt

Tether introduces XAUt, a gold-backed stablecoin aiming to revive the gold standard, offering a digital alternative to traditional gold with enhanced accessibility and usability.
Published on 2022-11-08

Tether Revives Gold Standard with Digital Gold-Backed Stablecoin XAUt

Tether, the issuer of the world’s largest stablecoin USDT, has reintroduced its gold-backed stablecoin, Tether Gold:XAUt, with the aim of reviving the monetary system based on the gold standard. This system, abandoned in the early 1970s, is now being reimagined in a digital form.

What is XAUt?

XAUt is a stablecoin backed by physical gold stored in a vault in Switzerland. Each token is equivalent to one troy ounce of a London Good Delivery gold bar, making it a modern, divisible, and easily tradable form of digital gold. Unlike physical gold, XAUt allows users to buy, sell, or store small fractions of gold, with a minimum transaction size of 0.000001 XAUt.

Benefits of XAUt

Tether positions XAUt as a superior alternative to traditional gold due to its ease of use. The digital token eliminates the challenges of storing, verifying, and trading physical gold, offering a seamless way to transact and save in gold. XAUt also allows users to preserve purchasing power, which is increasingly important amid rising global inflation.

Tether’s Vision for the Future

Tether believes Bitcoin is destined to become the world’s primary neutral reserve asset, alongside gold. As inflation rises, both Bitcoin and gold are expected to benefit, with XAUt serving as a complementary asset. The company emphasizes that XAUt is not competing with Bitcoin but rather with traditional fiat currencies, positioning it as a superior stablecoin.

Other Inflation-Resistant Cryptocurrencies

The crypto space is seeing a surge in projects aimed at combating inflation. Examples include Laguna Labs’ Nuon Flatcoin, the first cost-of-living cryptocurrency, and others like Frax Price Index (FPI), Volt Protocol (VOLT), and Hedging Coin (IHC), all linked to inflation indices.

Why This Matters

As global inflation continues to erode purchasing power, traditional stablecoins are proving insufficient. Innovations like XAUt and other inflation-linked cryptocurrencies are emerging to address this gap, offering new ways to protect and grow wealth in uncertain economic times.

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