Written by: imToken
As is well known, throughout the past thousands of years of financial development, the role of gold in the global monetary system has been repeatedly redefined.
The most recent shift in its role undoubtedly occurred after the establishment of the modern fiat currency system based on credit. Gold gradually moved away from everyday transactions and is now more often seen as a "hedging asset," "central bank reserve," or "macro hedging tool." Especially in the lives of ordinary people, aside from specific cultural contexts such as "Three Golds" and "Five Metals," gold has almost completely exited the payment scene.
However, if we shift our perspective away from developed economies and observe regions where inflation is out of control and monetary systems frequently fail, we can discover a new line of thought for reconsideration:
With the support of blockchain technology, gold is expected to regain the ability to be "priced, circulated, and used for payments," thus no longer just an on-paper hedging asset, but re-entering the forefront of the monetary system.