PANews reported on September 5th that Thu Lan Nguyen, Head of FX and Commodities Research at Commerzbank, noted that the World Gold Council has proposed a new initiative to modernize the gold market, including the introduction of a digital form of gold. This initiative may be motivated by concerns that stablecoins and/or central bank digital currencies could become alternative investments to gold. However, in our view, these concerns are unfounded. Both stablecoins and central bank digital currencies are pegged to fiat currencies—stablecoins are backed by the US dollar, while central bank digital currencies are directly issued by central banks, effectively functioning like cash. Gold, on the other hand, is apolitical, meaning it is not issued by any central bank or other political institution. The total amount of gold is primarily determined by mine supply, which fluctuates slowly. For investors investing in gold to hedge against political risk, the convenience and cost-effectiveness of fiat currency transfers may not be a primary concern.