RE:Russian Sberbank Issues Gold Backed TokenSo how much will this drive the price of GOLD?
I do not know. Maybe that is what is behind the strong pull up in the price of gold this week.
Andrew McGuire thinks this is a significant turn of events.
The tokens provide a means to circumvent USD sanctions. Countries or companies with USD can trade their unbacked USD for gold backed tokens. They can use those tokens to trade with Russia and other countries for that matter all outside the USD dominated global financial system. Being dependent on the USD made everyone vunerable to US sanctions.
The US has weaponized the dollar to sanction many in the world who fell out of favour.
It is attractive for both Russia and others. It gives everyone means to escape dollar hegemony and to do it with a gold back token.
Russia is trading in others currencies like China, Iran, and Indiain. However, that is not possible with everyone. Tokens now provide a means for anyone to trade with Russia or anyone else for that matter and do it in stable tokens that are backed with gold.
Russia can buy gold to back the token that can be used to trade any commodity. Russian can divest itself of unbacked reserves for gold to back its commodity driven economy.
A gold backed token can become a reserve currency in global trading. It may not replace the USD, Euro, or Yen but it can take a place as a competitor and maybe even one day dominate. In the short term it is in play now.
So, how significant is this? It may well be a significant counter to USD dominance.