PB >>18839527 US Postal Money Orders are not fiat like FRN's but are gold backed

To answer the question all you have to do is read the link. https://pe.usps.com/text/dmm300/509.htm#ep1124357

They are directly tied to fiat, if the value of fiat drops so does the value of your money order, they are paid out in fiat with no interest accrual. They are processed through the Federal Reserve. This is not a hedge against anything.

3.2.3 Purchase Method

Money orders must be paid for in one of these ways:

In U.S. currency and coins (in any amount).

With established traveler’s checks payable in U.S. dollars if the purchase is for at least 50% of the value of the traveler’s checks.

With ATM/debit cards at locations approved by USPS Corporate Treasury where the customer’s personal identification number must be entered on a keypad connected to a credit/debit terminal.

3.3.1 Validity and Value

Domestic money orders are paid regardless of their age. Money orders are not interest-bearing instruments; they are paid only in the exact amount imprinted up to the authorized maximum amount. USPS records serve as the basis for adjudicating claims for payment of money orders.

3.4 Federal Reserve System

3.4.1 General

All money orders are forwarded through the Federal Reserve Banking System, to which commercial banks have access. For this standard:

Money order means a U.S. Postal Money Order.

Federal Reserve Bank means a Federal Reserve Bank or branch thereof that presents a money order for payment by the postmaster general.

Presenting bank means a bank that presents a money order to and receives credit for the money order from a Federal Reserve Bank.

Reclamation means the action taken by the postmaster general to obtain refund of the amounts of paid money orders.

Examination includes examination of money orders for indicia of theft, forged endorsements, forged signatures or initials of issuing employees, raised amounts, and other material defects by electronic methods and visual inspection for defects that cannot be discovered electronically.

Stolen money order means a U.S. Postal Money Order stolen from a Post Office, classified or contract station or branch, or USPS employee before it is officially issued by the Post Office, classified or contract station or branch, or by a USPS employee discharging his or her official duties.

3.4.2 Payment

The postmaster general has the usual right of a drawee to examine money orders presented for payment by banks through the Federal Reserve System and to refuse payment of money orders, and has a reasonable time after presentation to make each examination. Provisional credit is given to the Federal Reserve Bank when it furnishes the money orders for payment by the postmaster general. Money orders are deemed paid only after examination is completed, subject to the postmaster general’s right to make reclamation under 3.4.4.