Peter Schiff Confesses He Grasps Bitcoin, Remains Skeptical of USD-Pegged Stablecoins, Eyes Gold-Backed Digital Asset

Prominent gold proponent and vocal crypto critic Peter Schiff is preparing to launch his own gold-backed digital token, questioning why investors would settle for U.S. dollar-pegged stablecoins when they could instead own tokens backed by precious metals.

“I get bitcoin, but not U.S. dollar stablecoins,” Schiff shared on X on Friday. “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?”

When a follower suggested he create a gold-backed stablecoin, Schiff confirmed his plans, stating: “They already exist. But I do intend to launch my own.”

Schiff’s comments come amid heightened regulatory focus on stablecoins, following the U.S. Senate’s passage of the GENIUS Act, which seeks to bring greater oversight to this growing sector. Stablecoins—digital assets pegged to traditional currencies or other assets—have ballooned into a market exceeding $260 billion, with Citi projecting the sector could reach $3.7 trillion by 2030.

Dollar-backed tokens such as Tether’s USDT and Circle’s USDC dominate the stablecoin market, serving as vital infrastructure for trading, cross-border payments, and remittances.

Gold-backed tokens, while far smaller at around $2 billion in combined market value, offer a blockchain-based alternative for investors seeking exposure to gold’s stability. Historically viewed more as a store of value than a medium of exchange, these tokens are increasingly being explored for use in decentralized finance (DeFi) applications as collateral or other financial tools.

Schiff’s proposed token reflects a growing appetite among investors for alternatives to fiat-pegged stablecoins, combining blockchain technology with traditional assets like gold for a potential hedge against volatility in both crypto and fiat markets.