1. It is represented 1:1 by 100% fiat currency
Digital Cash is Private sector CBDC kind of.
Difference between Gold-backed Stablecoins and Digital Cash
Digital cash is a digital version of fiat money.
The value of Fiat money is backed by nothing other than the confidence people have in their Government (and in the Central Bank, the issuer of fiat money).
Digital Cash depreciates as the same rate of Fiat money: e.g. Digital $ depreciates at the same rate of $.
The value of Gold-Backed Stablecoins is backed by Gold.
The value of Gold-Backed Stablecoins depends on the confidence people have in the value of Gold.
5000 years of history.
If digital cash (several currencies) and gold-backed stable coins had existed in the last 20 years, this would have been their relation
agree. at least right now, I think more people have more confidence in gold rather than cryptos. We don't know when cryptos can replace the value of gold. As long as gold existing, I think it will keep maintaining its function and power since it has proved over time.