RE:RE:RE:RE:RE:ES LIKES QHroberto146 wrote: "I don't think the intention is necessarily to have a gold backed currency that can be interchangeable with gold itself per say."
Then what's the point? Some country says they have a gold-backed currency. Some other country presents that currency, which they may have obtained by trade, and asks for gold because at this time they may need or want it. They are told No, you can't have gold. So they may just have paper, (like when you go to a bank, exchange paper, for ... paper of a different denomination, or maybe base-metal coins) or maybe just keep the paper, or flog it off to some other country at a discount.
If it's not convertible, it's not gold backed. It is mandatory that it be convertible. Country A could have 50,000 tons of gold and print money forever. If people take that money, and can't redeem gold for it, there will be no confidence in the currency; it's still just fiat money.
The gold backing/convertibilty is what provides the confidence.
The point is actually simple. There is a built in control for the printing of fiat. It must be backed by an undisputed store of value that is real and recognized. Not produced at a whim.
That does not mean that this store of value (gold) becomes interchangeable and tradable in a free market environment . That's what the fiat currency will undergo.
You do understand that all non-backed fiat currency only retains its value as the result of faith in the system and its controls. If that is lost, then the currency is gone as well. To restore it , there will need to be undisputed faith put back in place. And that will not be easy in an age of broken promises and collapse.
Thats the point.
Why do you think all the Central Banks are scrambling to acquire gold assets now? The Physical. Why do you think China and Russia have led the charge?
If you want to "weaponize" your currency, then back it up with a real store of value. And don't make the mistake of trading that value away.
Think about it.
Tx