Debt is definitely an issue with the US dollar, so is fractional reserve which is essentially part of what fuels the debt.

However, I don't really see a need for a gold backed crypto. And the idea that the gold backed CNY will be the underlying backing for the crypto is just even more confusing to me, in my opinion. Any crypto where its value stems from something "backing" it relies heavily on trust on the entity holding the reserves being honest, and that takes away from the trustless nature of crypto to begin with.

Bitcoin itself is perfectly capable of storing its value in the long run because of its decentralization, and the fact that supply is limited, means that it can essentially imo be an alternative to fiat without the uncontrolled depreciation in the long run, even without a gold backed crypto.