It is widely acknowledged that the fiat economy has been mismanaged and that the amount of money in circulation is poorly understood.
The United States’ national debt has reached an all-time high of over $31 trillion due to years of excessive government spending, which some economists believe could lead to a significant economic crisis.Others believe the impact will be more gradual, but there is a general agreement that the country is heading toward an economic crisis due to the rising debt.
In light of this, it is possible that the collapse of the US economy could trigger a global “Chapter 7” on the fiat currency just before the move to a CBDC. This could affect ( dissolve ) stablecoins like Tether and USDC.
Given a large amount of gold in reserve, it is worth considering whether it would be more beneficial to abandon the current fiat economy and create a new currency based on a nation’s gold reserves.
The BRICS nations are already exploring this option. As the original commodity, gold has a long history of being used as a medium of exchange and could serve as a stable foundation for a new currency.
However, it is crucial to carefully evaluate such a move’s potential benefits and drawbacks before making any decisions.