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.
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.
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:
Krueger believes that the stablecoin development would be transformative for the crypto economy, while comparing it to the dot-com boom of 1999.
The U.S. Securities and Exchange Commission (SEC) Chair, Paul Atkins, has revealed areas that the…
Senator Elizabeth Warren, a ranking member on the Senate Banking Committee, has raised concerns about…
The U.S. jobs report has come in stronger than expectations, signaling that the labor market…
Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) are falling as the U.S. Navy and…
The latest CLARITY Act update shows major progress for US crypto regulations. The Senate Banking…
Coinbase's first quarter financials were not as good as expected as digital asset prices fell…