Peter Schiff Claims to "Understand Bitcoin" but Not Stablecoins Pegged to the US Dollar, Plans to Launch Gold-Backed Token

Peter Schiff, a well-known gold advocate and long-time critic of cryptocurrencies and Bitcoin, has stated that he "understands Bitcoin" but does not see the value in stablecoins pegged to the US dollar. He argues that if third-party custody is required, it would make more sense to choose tokens backed by gold rather than those supported by "flawed fiat currencies like the US dollar." On Friday, Schiff posted on the X platform that he plans to launch his own gold-backed token, though he did not provide a specific timeline or further details. Currently, the market size of stablecoins backed by the US dollar has surpassed $260 billion and remains dominant, while the market for gold-backed tokens is relatively small, at around $2 billion. Schiff's comments come as the US Senate has passed the "GENIUS Act," aimed at regulating the rapidly growing stablecoin industry. Although gold tokens are still a niche market, they are mainly used as on-chain stores of value and are striving to play a greater role in decentralized finance (DeFi) applications, such as serving as collateral for loans.