China definitely has a credibility problem , and that hinders them having the reserve currency. The West has also developed a huge credibility problem also.
This is why I suggested they might try a block chain backed by gold. If they did so gold would be re-valued overnight. If say the value came to $10k an ounce, the worlds gold would flow into it.
This would spell the end of the USD
Gold @ $10,000 an ounce is just another fiat currency.
Commodities are worth their fair market value and the industial uses for gold would never support $10,000/oz.
Think the chip shortage is bad now add on $10,000oz gold.
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Last year the new craze in crypto was commodity pegged crypto currencies. The major drawback is that they require someone to Fort Knox the commodity reserves, gold for instance, backing the security.
I don't know what the answer is, but the game certainly continues to increase in complexity or at least dimension, if that's not actual complexity.
Pegging a currency value to a comodity is not the same as backing the currency with the commodity.
