From Critic to Innovator: Schiff Eyes Gold-Backed Stablecoin
Longtime crypto skeptic Peter Schiff now says he understands Bitcoin—but remains unconvinced by the rise of U.S. dollar-pegged stablecoins. Instead, Schiff is planning to launch his own gold-backed digital token, joining a niche segment of the stablecoin market that’s slowly gaining traction.
“If you’re going to introduce a third-party custodian, why settle for a token backed by a flawed fiat currency like the dollar, when you can own one backed by gold?” Schiff posted on social media.
Gold Over Fiat: Schiff’s Argument
Schiff’s comments come amid growing mainstream acceptance of dollar-pegged stablecoins, which now represent a $260 billion market. These tokens, such as USDT and USDC, are widely used in crypto trading, cross-border transfers, and decentralized finance (DeFi) applications.
However, Schiff criticized the concept of backing digital assets with fiat currency, calling the dollar “flawed” and advocating instead for stablecoins backed by tangible assets like gold. He confirmed he’s working on launching a token tied to gold but did not reveal a timeline or specific platform details.
Gold-Backed Tokens: A Small but Growing Market
Unlike dollar-based stablecoins, gold-backed tokens remain a niche, with an estimated market size of just $2 billion. While these tokens are mostly used as a store of value, efforts are underway to integrate them into DeFi platforms, allowing users to stake gold tokens or use them as loan collateral.
Proponents argue that gold-backed stablecoins combine the historical value stability of gold with the transactional efficiency of blockchain technology.
Stablecoin Regulation Accelerates
Schiff’s announcement coincides with rising momentum in U.S. stablecoin regulation. The GENIUS Act, recently passed by the Senate, sets new compliance and reserve standards for stablecoin issuers. Analysts expect the market to grow exponentially, with projections suggesting it could reach $3.7 trillion by 2030.
This regulatory clarity could benefit all stablecoin types, including those backed by commodities like gold, provided they meet compliance requirements.
Conclusion
Peter Schiff’s move toward launching a gold-backed token marks a surprising but strategic shift for one of crypto’s most vocal skeptics. His push against fiat-pegged assets underscores a broader debate around what kind of value should back digital currencies in a rapidly evolving financial landscape.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.