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https://www.zerohedge.com/crypto/next-pearl-harbour-chinas-gold-backed-crypto-currency-will-blindside-us-dollar


IMO, this is absolutely the plan.

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.

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.

Although I tend to align with their political bent, zerohedge is a terrible source. Most of what they report/repeat is rumor that never pans out. If you live life with the attitude of, "my enemies suck and will fall apart on their own, LOL!", then you live in complacency and usually end up losing your fights.

I think that China more-or-less accepts Western mainstream economics, so I doubt they believe that a gold-backed currency could work. They also know that challenging the dollar's dominance in such a direct, explosive way would be an unbelievable escalation which could very well lead to at least some kind of hot war. If they did create a gold-backed cryptocoin, it'd probably be heavily locked-down, probably more like their existing internal payment systems than anything like Bitcoin. (I have heard that the Chinese population has some affinity for gold-as-money.)

It would be incredibly interesting if China created a gold-backed cryptocoin usable cross-border. It'd probably be a big hit worldwide, and would definitely erode the USD's (and US's) influence. It'd be especially cool if they did it via blinded bearer certificates like I described here (https://bitcointalk.org/index.php?topic=4703851.0).

If the money today are just paper worth nothing and backed by just a declaration that it has value then its basically just worthless that we are led to believe it has value at all. China's currency backed by gold would be a more attractive currency as its purely base on real asset. Now who would declare war against China like how they would do it with presidents who tried creating their petrodollar?

This is lazy an uninformed. Also, how do you get complacency and self assurance from the tone of this article? That makes zero sense. Zero Hedge is BY FAR not the only one reporting this, but you would rather attack the source than give the contents a thorough review.

This IS happening, anyone who has been paying attention to the economic trends of China and the world in general should be acutely aware of these developments in not only the accumulation of gold, the goals to issue gold/oil backed yuan, as well as the shift to a state backed crypto. When you actually bother looking into this, be sure to let me know how wrong you were. I don't expect much though, because the shit talking always flows freely, but the corrections always sit in 8pt font on the last page.

I think it's Italy that was trying to repatriate its gold but back on topic, yes it's totally something China would do. It seems there are more countries trying to buy as many gold and repatriate what they've stored in international banks so it would not be surprising if China has already done it and more. Not sure about them making an oil-backed crypto though, that seems like it'll be more Russia's thing.

The currency being crypto is a big advantage for China since it'll be able to get through blocking attempts, like how people are still able to use bitcoins where it's not allowed.

I can't read what china's trying to do here maybe china is trying to get off from the USD back fiats and build their own currency to retaliate to the US. This trade war never ceases, two power house trying to control over the market.
Either way if they decide to adopt crypto currency then this could be a good news for us bitcoin enthusiast.

Seems China wants to lead with this innovation by mass adoption with the introduction of their own gold back cryptocurrency. When its back by gold, means that they want people to trust it and with being back up by China government, they are in a strong position. No country yet announced their own crypto back with gold IMHO, only crypto back with petrol like in the case of Venezuela government.

Confused on how/why China would actually be able to blindside the US dollar with their goldbacked currency. I don't think anyone really is going to care and they'd much rather seek the usage of the US dollar -- which is accepted everywhere -- instead of using some random gold back crypto from China that isn't vetted.

This article is only like 3 sentences as well, what's the significance here anyway?

Since several people are having trouble getting sparks in their neurons to form, I took the liberty of documenting this trend further. It is quite well known, quite mainstream, and quite public.


These sources vanilla enough?

https://www.forbes.com/sites/kitconews/2016/04/13/chinas-yuan-based-gold-fix-to-include-two-international-banks/

https://oilprice.com/Geopolitics/International/China-Prepares-Death-Blow-To-The-Dollar.html

https://asia.nikkei.com/Markets/Commodities/China-sees-new-world-order-with-oil-benchmark-backed-by-gold

https://www.cnbc.com/2017/10/24/petro-yuan-china-wants-to-dethrone-dollar-rmb-denominated-oil-contracts.html

https://www.bloomberg.com/news/articles/2019-09-09/china-s-gold-buying-spree-nears-100-tons-as-trade-war-drags

https://www.forbes.com/sites/michaeldelcastillo/2019/08/27/alibaba-tencent-five-others-to-recieve-first-chinese-government-cryptocurrency/

https://www.independent.co.uk/life-style/gadgets-and-tech/news/china-cryptocurrency-launch-when-bitcoin-billionaire-invest-a9055376.html


China has a long memory...

https://www.chinainsight.info/history/1177-consequences-of-the-boxer-rebellion.html

http://blogs.bu.edu/guidedhistory/moderneurope/tao-he/

They plan to do exactly what was done to them. Strip the west of PM's using fiat and drugs (Fentanyl + more).

I see what's being thought of here now. Didn't make too much sense on ZeroHedge as its too short, cryptic, and doesn't truly explain anything.

I feel like this is a pretty good quote in showing that this may not be able to happen.


China does have some partners they'd be able to tap though, and they might be able to make some more friends through investment. Might be able to work out with them, but the US isn't going to take this one sitting down.

That is also an article from 2017. You might want to double check on that convertibility question, because contracts are now open. No one said the US would take it sitting down, but if they are reactive and not proactive it isn't going to matter because it will be too late.

https://www.zerohedge.com/crypto/hashrate-domination-china-controls-two-thirds-worlds-crypto-networks-processing-power

Effectively China can initiate a 51% attack at any time. Given their stranglehold on network infrastructure, this is not at all a stretch.

That'd mean they would have to seize, or put an order out to the companies that control the vast processing power within Crypto. I'd assume that most with listen to them, as they know what would happen if they wouldn't (insert pictures of China killing people who disagree with them here)

Though if a 51 percent attack were attempted, we'd probably see the end of Crypto as people don't see the trust anymore. Would be a very crazy battle to see as people outside of China boot up their unprofitable machines just in an attempt to keep the integrity of the network.

Wild to think about.

Gold backed anything from China won't work unless China enables you to switch from crypto to physical gold no matter where you are.

If I have to go to China to get my physical  gold for my crypto... It will fail.

If they are not going to give gold at all, it is a failure without a doubt.

They might accomplish this via their HSBC branches located all over the world but then... we will discover that if they were really honest about this whole thing.

Long story short, China won't let you to move your gold out of the country just like any other country.

The only way to move wealth without pain is bitcoin. (The pain starts when you decide to get back to FIAT though it is not about "moving")

The painful way is FIAT and banks. The Impossible or near impossible way is gold.

What is stopping them from being honest about it long enough to crush the dollar and put themselves in control? They would be taking a page out of Walmart's book, dropping the prices so low it crushes all the competitors, then they can safely jack up all the prices without fear of the customer base going elsewhere, because there is no where else to go.

The zerohedge is a nice place to source ideological discussion, they raise some nice points. But other than that, I don't see much value in using them as a news source.

FIAT money brought to the western world positives that a gold backed currency could have never. Of course, there are the bad apples of bad central bank management but any tale of overtaking the US dollar now is an alternative reality.

The problem with strategy is, China might collapse far quicker than the "other side".

Did you know there were police officers in airports in China who were questioning the outgoing Chinese citizens, stupid shits like "Why are you leaving China?" (like why would anyone leave our beautiful country wtf is wrong with you?)

Would the authority which doesn't want you to leave the country let you move your wealth out of the country freely? Even though this was just an act?

A big NO. The moment they make this possible, every Chinese with a little bit of life savings would want to leave that hell hole. It will just backfire.

Don't get me wrong, China deserves plenty of criticism, and I am not a fan of the CCP, but your all or nothing approach to this situation leaves a lot of room for a lot of what I am describing in between. They don't have to be 100% trustworthy or 100% open for this strategy to work. One thing they are already using is having a domestically used yuan that is heavily restricted and an international yuan which is dedicated toward international use. They could easily adapt that strategy to these scenarios. I think overconfidence in their impending failure is a mistake. They only need to last long enough to pull this off, then their plan would run under its own momentum.

In the general sense, this is an effort to understand and forecast the abusive use of crypto currencies by governments.

It's definitely something that will happen repeatedly. This particular scheme allegedly by China isn't a game changer.

The gold/oil backed yuan part is the game changer, crypto is just something that will multiply the effect and speed it up, it is not the linchpin itself.

gold backed currency?

so one has to trust the chinese bankers, or the american banksters, good luck both is not trustworthy, additionally how is that currency called "chinese" but in reality it is a private enterprise