Is China hoarding gold so yuan becomes global reserve instead of USD?

CoinTelegraph

by Felix Ng

February 11, 2026

AI-Generated Deep Dive Summary

China has been steadily accumulating gold reserves over the past 14 months, fueling speculation that it aims to challenge the US dollar’s dominance in the global financial system. Some analysts suggest that Beijing is hoarding far more gold than it officially reports, potentially amassing up to five times its declared reserves. This strategy could allow China to eventually promote the yuan as a global reserve currency, displacing the USD as the world’s primary economic and trade standard. The article highlights how China has been working for decades to shift away from US dollar dominance, with President Xi Jinping explicitly stating the goal of making the yuan widely used in international trade. While a gold-backed BRICS currency remains unlikely due to the complexity of coordinating among multiple nations, a unilateral effort by China could create a new monetary system backed by gold and centered around the yuan. This approach would allow China to reduce global demand for the US dollar while building a financial buffer tied to real value. Experts like Dominic Frisby and Jan Nieuwenhuijs argue that China’s reported reserves (2,306 tonnes) likely underestimate its holdings, which could be as high as 5,411 tonnes or even more. By buying gold quietly and avoiding price manipulation, China could exert long-term downward pressure on the USD without triggering market panic. This tactic aligns with Beijing’s broader strategy to gradually reduce reliance on the US dollar and establish the yuan as a major global currency. The implications for crypto enthusiasts are significant. If China succeeds in challenging the USD’s dominance through gold-backed strategies, it could open new avenues for alternative reserve assets like cryptocurrencies. A shift away from traditional fiat currencies toward more diverse financial systems could reshape international trade dynamics, potentially elevating the role of digital assets in global finance. For now, however, the yuan and gold remain at the center of China’s efforts

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Originally published on CoinTelegraph on 2/11/2026