Gold Renminbi VS stablecoin US Dollar: The New Battlefield of Currency Hegemony Between East and West is Fully Launched

Gold prices have broken through $3,600, with global Central Banks increasing their gold holdings for 10 consecutive months. The battle for monetary hegemony is quietly escalating. The East is gilding the Renminbi with gold, while the West is reinforcing the dollar with Computing Power and stablecoins. This financial showdown spanning the gold market and the encryption world may rewrite the global currency landscape.

Tsinghua University Unleashes: Gold-Backed Renminbi

Latest data shows that by the end of August, our foreign exchange reserves exceeded 3.3 trillion USD, reaching a nearly ten-year high, with gold reserves increasing by 60,000 ounces, accounting for a new historical high.

The real key action took place in May—Shanghai Gold Exchange established its first overseas gold delivery warehouse in Saudi Arabia, while simultaneously advancing its storage layout in Hong Kong, Singapore, Switzerland, and other locations.

This means that institutions and individuals holding RMB overseas will be able to directly exchange RMB for physical gold and pick it up nearby in the future, effectively adding a gold backing to the credit of the RMB.

If Saudi Arabia is willing to sell oil in RMB and can quickly exchange these RMB for gold, it could form a new cycle of “oil-RMB-gold,” positively challenging the “petrodollar” system.

The Great Counterattack: Computing Power and Stablecoins Reinforce the US Dollar

Facing challenges, the West did not sit idly by. During his second term, Trump made his first visit to the Middle East, signing a $3.2 trillion deal with Saudi Arabia, Qatar, and the UAE, which is backed by a major policy shift—relaxing technology export restrictions and promoting the Middle East to become the world's third hub for AI Computing Power.

The core of this strategy is to replace part of the function of “petrodollars” with “Computing Power dollars”: Middle Eastern countries still need dollars to purchase AI chips and technical services in the post-oil era, thus locking in the demand for dollars.

At the same time, the West passed the “Stablecoin Innovation Guidance and Establishment Act” in May, requiring stablecoins to be 1:1 backed by high-quality liquid assets (such as U.S. Treasury bonds), directly converting the growth of the encryption market into demand for U.S. debt, further solidifying the dollar's hegemony in the digital finance sector.

The Historical Reflection of Currency Games

Historically, the transfer of monetary hegemony has often been accompanied by a reshaping of gold's role:

1785–1800: The Industrial Revolution shifted the global trade center from the Netherlands to the United Kingdom, with the British pound linked to gold, and the monetary system transitioning from a silver standard to a gold standard.

1925–1940: The Great Depression and World War II destroyed the pound system, and the dollar replaced it while being linked to gold.

Today, the surge in gold prices once again hints that the old order is loosening, while the new order has not yet fully taken shape.

The Revelation of Gold and the Twilight of Paper Money

The value of gold does not lie in how many dollars or yuan it is worth, but in the fact that it does not rely on the credit of any country and is universally recognized across civilizations and changes in regimes.

The global Central Bank gold reserves have historically surpassed US debt, this is not a celebration of gold, but the twilight of paper currency.

Every major surge in gold is a signal of the widening cracks in the old currency system. The current gold market is the prelude to the restructuring of the global monetary order.

Conclusion

The East uses gold to bolster the Renminbi, while the West strengthens the US dollar with computing power and stablecoins. These two different “non-traditional currency tools” are shaping the future international financial landscape. For ordinary investors, understanding the underlying logic of this currency game is more important than short-term exchange rate fluctuations—because it will determine asset pricing and wealth security for decades to come.