Peter Schiff to Launch Gold-Backed Token, Slams USD Stablecoins

Renowned gold advocate and long-time Bitcoin critic Peter Schiff has revealed plans to launch his own gold-backed crypto token, questioning the logic behind U.S. dollar-pegged stablecoins. In a recent post on X, Schiff stated, “I get bitcoin, but not U.S. dollar stablecoins. 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?"

Responding to a user suggestion to issue a gold-backed stablecoin, Schiff confirmed his intent, adding, “They already exist. But I do intend to launch my own.”

His announcement comes amid growing regulatory momentum in the U.S., with the Senate recently passing the GENIUS Act aimed at bringing more oversight to the fast-growing stablecoin sector. Stablecoins, digital tokens pegged to assets like fiat currencies, have ballooned into a $260 billion market and are expected to reach $3.7 trillion by 2030, according to Citi.

Dollar-backed stablecoins like Tether (USDT) and Circle (USDC) dominate the market, serving as essential tools for crypto trading, remittances, and cross-border payments. However, Schiff and others see greater long-term value in alternative models, such as gold-backed tokens.

Currently, gold-pegged cryptocurrencies account for a modest but growing $2 billion segment of the market. Unlike fiat-backed stablecoins, these tokens are primarily used as digital stores of value, reflecting the intrinsic qualities of physical gold. Developers are also exploring DeFi use cases, including using gold tokens as collateral for crypto loans.

Schiff's move adds fuel to the ongoing debate over the future of digital assets and the role of real-world backing—whether gold or fiat—in stabilizing token value in the evolving crypto economy.