Stablecoin Wars Ignite: Peter Schiff Champions Gold-Backed Digital Assets
Peter Schiff criticizes stablecoins backed by US dollar reserves, arguing that relying on a fiat currency prone to inflation is illogical compared to gold, which has a fixed supply and historical stability. His comments have sparked renewed debate on the backing of digital currencies. Interest in gold-backed stablecoins, such as Tether Gold (XAUT) and Paxos Gold (PAXG), is rising among investors concerned about inflation and dollar depreciation. These tokens offer liquidity and quick transfers while being tied to physical gold stored in vaults. Global regulators are working on establishing regulations for stablecoin reserves, with US Congress considering stricter requirements. Schiff's remarks have gained significant attention, highlighting the risks of fiat-backed tokens. Critics of gold-backed coins note higher fees and logistical challenges compared to dollar-pegged stablecoins, which are widely used in decentralized finance (DeFi) for lending and trading.
