Peter Schiff, vocal proponent of gold and a longtime critic of cryptocurrencies and bitcoin
, stated he intends to launch his personal gold-backed token whereas taking a dig on the worth of U.S. dollar-pegged stablecoins.
“I get bitcoin, however not U.S. greenback stablecoins,” Schiff posted Friday on X. “If you are going to introduce a third-party custodian, why accept a token backed by a flawed fiat forex just like the greenback, when you may personal one backed by gold?”
In a reply to a consumer who inspired him to launch a gold-backed stablecoin, Schiff confirmed: “They exist already. However I do intent [sic] to launch my very own.”
His remarks come because the U.S. Senate passed the so-called GENIUS Act to manage the quickly rising stablecoin sector, a sort of digital forex with costs anchored to an exterior asset corresponding to fiat currencies. The stablecoin market mushroomed to over $260 billion, with Citi forecasting that it may turn into a $3.7 trillion asset class by the top of the last decade.
These tokens have turn into a key piece of buying and selling infrastructure and are more and more fashionable for cross-border funds and remittances. The market is dominated by U.S. dollar-backed tokens like Tether’s USDT and Circle’s USDC.
Gold-backed tokens, in the meantime, make up a distinct segment however rising phase with a market size of round $2 billion. Opposite to fiat-backed stablecoins, gold tokens are largely used as a retailer of worth, like their bodily model, however on blockchain rails. Nonetheless, there are ongoing efforts to deliver extra utility for gold tokens in decentralized finance functions, for instance utilizing as collateral for loans.
Learn extra: Stablecoin Protocol USDT0 Aims to Bring Tokenized Gold Closer to DeFi