02/05/2026
RUMOR: China is reportedly pushing toward a gold-backed yuan to challenge the global reserve system.
The speculation claims this is why China has been cutting its holdings of U.S. Treasuries.
At the same time, the country has been aggressively increasing its gold reserves.
Supporters of the theory say gold backing would boost trust in the yuan internationally.
It could also reduce reliance on the U.S. dollar for global trade.
Critics argue there is no official confirmation of such a plan.
They say reserve shifts can happen for many economic reasons.
Markets are watching China’s moves closely regardless of intent.
Any shift in reserve currency dynamics would have major global impact.
For now, this remains speculation, but one with serious implications.