Prominent economist and gold advocate Peter Schiff has reignited debate over the utility of U.S. dollar-backed stablecoins.
In a post on social media, Schiff acknowledged Bitcoin’s role in the financial ecosystem but sharply criticized stablecoins that rely on fiat currency reserves—particularly the U.S. dollar.
“I get Bitcoin, but not U.S. dollar stablecoins,” Schiff stated, questioning the logic behind using a token tied to what he calls a “flawed fiat currency.” He argues that if a third-party custodian is required to support a digital asset, it would make more sense for that asset to be backed by gold rather than fiat.
Schiff’s argument centers on two key points: liquidity and intrinsic value. He contends that gold-backed digital tokens can offer the same level of transactional utility as stablecoins like USDC or USDT, but with the added benefit of being underpinned by what he views as a true store of value.
This perspective underscores a growing trend in the market as gold-backed stablecoins such as Tether Gold (XAUT) and Paxos Gold (PAXG) gain traction among investors seeking protection from inflation and dollar devaluation.
While Schiff remains skeptical of cryptocurrencies overall, his nuanced take reflects a broader shift among traditional financial thinkers who are beginning to differentiate between speculative assets and those with perceived lasting value. His comments arrive as regulatory frameworks for stablecoins continue to evolve globally, further intensifying scrutiny around what constitutes secure backing.
With over 500,000 views in less than 24 hours, Schiff’s critique is likely to fuel ongoing discussion about the future of stablecoins—and whether gold can reclaim its historical role in the digital age.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/economist-peter-schiff-questions-dollar-backed-stablecoins/