How Bitcoin and USDT Are Jointly Threatening Gold

JPMorgan analysts report a shift in investment from gold ETFs to Bitcoin ETFs following the Iran conflict, with SPDR Gold Shares experiencing outflows and BlackRock’s iShares Bitcoin Trust seeing inflows. This reverses a previous trend. Simultaneously, a report by the Global Initiative Against Transnational Organized Crime (GI-TOC) reveals that Tether’s USDT is increasingly used in the illicit gold trade in Latin America, specifically in Venezuela, where it’s become a key payment method for illegally mined Amazonian gold. The Maduro government is reportedly leveraging this trade for political and financial gain. While the U.S. Congress is considering legislation to combat illicit gold mining, experts emphasize the need to address the role of cryptocurrency, particularly stablecoins, in laundering proceeds from this trade to ensure the legislation’s effectiveness. Bitcoin’s increasing institutional adoption and decreasing volatility further contribute to its appeal as a safe-haven asset, challenging gold’s traditional position.

(Source：BeInCrypto)