Peter Schiff: “I Get Bitcoin But Not USD Stablecoins”, Calls Them Flawed Tokens
Highlights
- Peter Schiff slammed USD stablecoins stating that they have no real value for economic transactions.
- He advocated for gold-backed stablecoins, emphasizing their dual benefit of liquidity and serving as a reliable store of value.
- Countering Schiff’s skepticism, Bitcoin investor Fred Krueger predicted that stablecoins would transform global transactions.
- Krueger believes major e-commerce companies like Amazon likely adopting them within 12 months.
Peter Schiff criticized USD stablecoins as “flawed” tokens tied to a depreciating fiat currency, coinciding with the GENIUS Act’s progress to the House. His remarks come as President Donald Trump urged House members to pass the bill quickly for his immediate approval. While many experts argue that USD-pegged stablecoins could strengthen the Dollar’s global dominance, Schiff emphasized that the underlying fiat currency is steadily losing its value.
Peter Schiff Advocates Gold Stablecoins Over USD Stablecoins
A day before, US President Donald Trump personally backed the GENIUS Stablecoin bill, adding that it will “make America the UNDISPUTED Leader in Digital Assets.” Expressing strong skepticism over this, stating that these tokens would be no better when the US Dollar is itself losing its value. In his message on the X platform, Schiff wrote:
“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?”
Peter Schiff added that the gold-backed stablecoins offer liquidity similar to USD stablecoins but with the greater advantage of being a store of value. Schiff highlighted that stablecoins are primarily utilized for cryptocurrency trading, rather than serving as a tool for broader economic transactions.
Fred Krueger Bursts Schiff’s Myth
Although Peter Schiff believes that stablecoins won’t contribute to broader economic transactions, popular Bitcoin investor Fred Krueger believes that the GENIUS Act approval by the House will change the game how transactions are done.
Krueger noted that in the next 12 months, major e-commerce companies, starting with Amazon, will begin accepting stablecoins. Last week, Shopify announced a partnership with Coinbase and Stripe to facilitate stablecoin payments.
He attributes this shift to the regulatory clarity provided by the GENIUS Act, which ensures:
- Compliance with AML and KYC requirements.
- Consumer confidence through safety assurances.
- Potential incentives and rebates for adoption.
- Significant advantages for cross-border shipping.
Krueger believes that the stablecoin development would be transformative for the crypto economy, while comparing it to the dot-com boom of 1999.
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