China's Gold-Backed Digital Yuan - What It Means For Gold, Crypto, and Money!

In this video I respond to a viewer who said that China's Digital digital Yuan will be backed by gold and that it will restore faith in money, and unseat Bitcoin as the leading crypto currency.

As it stands today there are a lot of rumors and conspiracies going around about China's Digital Yuan and in this video I am try to get the facts, and expose the lies and false rumors for what they really are.

If you put your money in Crypto, Bitcoin or Gold, you won't want to miss this video!

In that video I clearly explain that if China has a currency that appreciates in value (like gold does) it would destroy one of their biggest businesses - which is cheap exports of stuff to other countries (that's an important point I do not cover again in this video).

0:00 - Intro

2:25 - Gold Crypto Exists - here I talk about the concept of gold-backed crypto not actually being a novel idea and I list the gold-backed cryptos you can buy today.

4:45 - China doesn't have enough gold to cover their entire money supply - here I explain exactly how much China says they have - how much people suspect they have, what the value of it is, how much it is of world gold reserves, and it means for the Digital Yuan.

9:58 - China is all about control - how does gold impair their ability to control to money supply? I answer it here.

10:44 - Conclusions and full summary of what the digital yuan will be - but more importantly what it won't be! Be sure to watch this part to the very end!

Links to sources:

China Gold Stash Figures Article:

China Money (M1) Supply Data:

Twitter: BaldGuyMoney

[tunnain]

Excellent explanation on Digital Yuan. I am about to dive into Gold Backed digital currency - appreciate your postings on this subject. Keep it up

[andrewpacker]

If gold was revalued at $10, 000 they would have enough.

[michelsteven]

Your chanel is very, very, interesting indeed👍👍👍. Good job.

[trevormackay]

Great discussion, but I disagree with the premise. China is not expected to back their current fiat currency to gold. They would back their newly forming digital currency to it, allowing them to arbitrarily create a value of their currency that aligns with the % of gold they hold.

[leslievincent]

Em excellent video apart from one thing and that is gold is not a currency, gold is MONEY. For example: if you took your coat to the dry cleaners they would take your coat and give you a ticket / receipt . That ticket represents currency and your coat represents gold. When you get your coat back you do not say or think I have a ticket / receipt you say I have my coat. When you own physical precious metals you think and say I have money.
One more thing, you do not need electricity and a digital devise to own gold. And what with energy prices and shortages how could anyone rely on any Crypto currency's

[bradsmith]

Good video. Makes sense. I often wondered how any country could have a gold backed currency due to the possibility that if the gold price rises, wouldn't too many people exchange their fiat for real gold? Draining the reserve? Perhaps I don't understand what a gold backed currency entails.

By the way, in some of your videos you have some interesting things in the background- music, astronomy, etc. Very interesting hobbies!

Keep up the great work! Also a side note; "bald" looks good on you", low maintenance. :-)

[Westerer]

Interesting thoughts. Thanks for researching and sharing.

[GaryBlankenshipb]

Its not real gold or silver unless its in your hand

[lorensmith]

Kingold Group backs up fake Yuan with fake gold. Is that how that works?

[goldenboy]

And what if we revalue the gold ? 10 trilions for the whole gold market cap is small.

[TheGilbalfas]

Great content. Btc future is fascinating

[skareqwe]

So you talk a lot about china not having enough gold? forgot about russia? and how they are rolling together with china on their way to get rid off dollars spot as reserve currency. I assume that russia and china have enough gold together to do that already. Its a matter of time...

[minarchist]

I do not recall all the details off the top of my head. But several months to about a year or so ago in China they had a major scandal they tried to sweep under the rug. A very large Chinese firm that specialized in handling physical gold was found to have been using gold plated bars instead of actual gold bars to settle a debt.

Given that sort of thing has been documented to have happened then it potentially calls into question exactly how much physical gold might actually be in China and to what extent they might be trying to claim that they have more gold than they actually do.

[kenderosa]

Handsome Bald Guy, I am enjoying your videos and appreciate the work you are doing to produce them. Please keep up the good work

[EverettGRC]

Another great video brother! Keep up the good work👍

[siddharthbahl]

hi, what if Chinas CBDC is backed up with Gold, only for non Chinese.... like the USD till 1971

[alexeichurilov]

The Chinese government can launch a new gold yuan token, which will be completely unrelated to paper yuan.

[RedShiftedDollar]

China can revalue gold anytime they want just like the US used to. This is because they have enough gold to ensure a peg at any price they want. As long as they allow convertibility in both directions, they can make their yuan a very attractive currency for anyone who holds gold. They won’t need to decrease their money supply or anything like that. They would just boost the value of gold instead.
Also in regards to trust, all you need to trust is their ability to honor the peg. This is because they will not be able to manipulate because you could just withdraw your gold again. Also, you can save in gold and convert to yuan whenever you need to spend. A gold backed yuan is compatible with saving in an asset that is decentralized and lacks monetary authority, gold.

[fzr]

This video isn't that compelling because we don't know exactly how the new digital yuan will be correlated to their gold holdings. We know China has said their digital yuan will not be subject to other currencies and they want to bring financial discipline to their currency and the world. The argument that there are other gold backed digital currencies is meaningless because money must be central government controlled or it can't work (and why bitcoin can't work)

[zakupoprodaju]

Great video. But small suggestion about the money supply and gold value.G20 can agree to revaluate gold. Let say 20K oz.It is a simple administrative measure which can be done during a weekend .In that case China can cover money supply, and debt to gdp of all countries will be much lower. Let`s call it -The Great Reset :)