I wouldn't call it blind faith similar to how it isn't blind faith to get usd stable coins

I think paxos and xaut have audits etc. from what I know/ I have heard.

Although having more audits is always a neat idea but I was just proposing that there are ways to invest in things like gold and have things like liquid gold perhaps via stablecoin or some other means too basically allowing you to instantly sell gold and gold is a pretty good hedge against stablecoin imo.

I actually once wrote about this idea of narrow banking discovering it accidentally where I wanted a bank which could invest in treasury bonds for inflation protected money or gold.

https://gist.github.com/SerJaimeLannister/c3db4eb84da96decfc...

Hey, so does gold-backed currency!

How do you know how much gold the government is holding? Ask them!

How do you know the government isn't lying? Ask this question loudly enough and meet people with guns!