PAXG already exists, which is a coin backed by gold. I plan to use it a lot after this year’s crypto cycle is over.

>Backed by London Good Delivery gold bars held in LBMA vaults in London. Paxos is a regulated trust company in New York.

USD predictably loses value over time. That means a stablecoin issuer can invest the gained fiat dollars in stable stocks, and make a reliable profit.

Gold can (and does) rapidly rise in value. An issuer of a gold stablecoin could only ensure avoiding bankruptcy by actually owning that amount of gold.

That would probably be difficult to do in practice. (And would also significantly cut into the profit potential of the issuer.)