Peter Schiff Slams USD Stablecoins, Plans To Launch Gold-Backed Alternative

Peter Schiff has criticized USD stablecoins as weak digital assets pegged to a declining fiat system. His remarks follow new legislation being pushed forward to endorse the use of stablecoins in the United States.

Peter Schiff Criticizes USD Stablecoins as Weak Assets

Notably, Peter Schiff publicly questioned the foundation of USD-pegged stablecoins. According to him, they rely on a fiat currency he believes is steadily depreciating.

He argued that backing digital tokens with U.S. dollars does not provide the economic utility or long-term value that some claim.

In addition, the financial analyst stressed that though these stablecoins can help most users make an easy trade in crypto assets, they cannot be applied in wider commerce.

Schiff added that the falling purchasing power of the dollar reflects the same powerlessness in any token associated with it.

The Bitcoin critic remarks follow increased promotion of the GENIUS Stablecoin Act in Congress, an attempt to govern the stablecoin industry.

Peter Schiff Supports Gold-Backed Tokens

Expanding on his criticism, Peter Schiff endorsed gold-backed stablecoins as a more practical and durable alternative.

According to Schiff, such tokens offer the same liquidity as USD stablecoins but with the added strength of being tied to a physical asset historically used as a store of value.

Furthermore, he stated that both the price stability and universal acceptance of gold make it a great reserve for digital currencies.

Schiff has always argued that gold was a better store of purchasing power than fiat currencies, and that a token secured with gold would provide ease of use and hedge against inflation.

Schiff Teases Plans to Launch Gold-Based Stablecoin

Replying to one of his followers on the X post thread, Schiff teased about establishing his gold-based stablecoin.

Although he did not give specific timelines or collaborations, his message communicated continuous growth or planning in such a direction. The proposed token would compete directly with USD-pegged options currently in circulation.

Moreover, the Bitcoin critic continued to argue when one user explained that USD stablecoins serve the crypto ecosystem by offering unmatched liquidity and global integration.

Schiff replied that gold-backed tokens can provide the same utility without relying on the U.S. dollar. He added that dealing in dollars doesn’t require blockchain-based tokens at all.

Peter Schiff also continued his criticism of the top cryptocurrency, stating,

“Gold is something. Bitcoin is nothing.”

USD Stablecoin Adoption by E-Commerce Giants

As Schiff questioned the usefulness of the USD stablecoins, Bitcoin investor Fred Krueger presented an alternative view.

He forecasted that in the future, major e-commerce sites like Amazon might accept transactions through stablecoins within one year.

According to Krueger, regulatory advancements are likely to accelerate the adoption process.

Krueger’s comments follow Shopify’s recent partnership with Coinbase and Stripe to support stablecoin payments.

He stated that a shift toward digital assets in retail is becoming inevitable as businesses seek faster, more reliable settlement mechanisms.

In his view, stablecoins could eventually reshape global payment systems in much the same way the internet disrupted traditional retail in the late 1990s.

GENIUS Act Sets Framework for Stablecoin Integration

Meanwhile, the stablecoin conversation is occurring against the backdrop of the GENIUS Act, which recently advanced to the U.S.

House of Representatives. Supported by President Donald Trump, the act proposes a legal framework through which all stablecoin issuers must be in compliance with anti-money laundering (AML) and know-your-customer (KYC).

Moreover, the bill also proposes possible rebates and early company adopters. Advocates also hold that the bill will clear an unregulated space in the digital economy of finance and enhance consumer trust in the use of token-based dealings.

The GENIUS Act will outline the legal landscape in which stablecoins are used in the United States so that they can be innovatively used, but under suitable regulation.

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