The CEO of Stasis criticizes gold-pegged stablecoins, starting with Tether Gold. Gregory Klumov expressed his thoughts in a long press release, delving into a concept that had been previously posted on Stasis’ blog.
His long consideration starts from a premise: many stablecoins have not produced the value and strength one would have expected, to the extent that according to Stable Report, 150 stablecoins are inactive or dead, and 40 stablecoin projects anchored to gold have closed.
The weak points of gold-pegged stablecoins
The CEO of Stasis goes into a long analysis about the safety and convenience of stablecoins pegged to gold.
First of all, this type of cryptocurrency must have gold reserves deposited somewhere and the storage alone clearly has significant costs. Moreover, according to Gregory Klumov, gold can be replaced with tungsten. In his view, maintaining enormous quantities of gold involves a negative return, an investment that costs more than the yield.
That’s why the stablecoin projects related to gold have failed:
- Gold is volatile;
- The new generations don’t rely on gold, they consider it a thing of the past;
- The “Bitcoin generation” prefers to use cryptocurrencies instead of gold;
- Gold has a potentially unlimited supply, but we don’t know how much governments hold.
The verdict of the CEO of Stasis is clear:
“By using gold as the underlying layer to stablecoin, its creators increase the chances of a project failure”.
This is where begins a direct attack on Tether, which recently issued Tether Gold, and all other similar projects. The reason being, notes Klumov, is that using gold as the underlying with the risk of it being replaced with tungsten can only lead to other problems.
While it cannot be claimed that gold will be 100% replaced by digital assets, since it provides a good opportunity to make a profit due to the fluctuation of its price, gold represents everything that new generations are trying to avoid.
His conclusion is that the world needs a “next-generation E-currency“, which allows better options for transfers, exchanges and payments. Something fast in an equally fast world.
His solution? A stablecoin not pegged to gold but to assets such as dollars or euros. Not by chance considering that Stasis operates EURS, the stablecoin that’s anchored to the euro. Stablecoins like EURS are in fact, according to the CEO of Stasis, the best solution to bridge a gap between classical finance and the one that is discovering digital assets. Today, states the CEO, EURS is the largest stablecoin not pegged to the dollar.
In the end, he concludes that although it is not certain that Bitcoin can be the digital currency to replace banknotes, one thing is certain:
“Gold-backed stablecoin will never have a future”
A biased view
His view, rather than an objective analysis, is clearly a stance aimed at sponsoring EURS and criticizing a rival like Tether Gold and other similar projects.
It is true that gold is volatile and apparently not used by new generations, but it remains the ultimate safe haven, and the facts prove it. It is no coincidence that with the recent geopolitical tensions, gold and Bitcoin have returned to rise again, while the stock markets collapse.
After all, Eurs and Tether Gold, precisely because they have a currency and gold as their underlying assets, remain two projects that are far too different to be considered on the same level.