TLDR
- CZ says Schiff’s gold token is not on-chain and depends on third-party storage.
- Schiff claims users can store gold and redeem it via blockchain and debit cards.
- Schiff predicts Bitcoin will go to zero and calls it a giant pump-and-dump.
- Gold dropped $2.5 trillion in value over 24 hours after a strong price surge.
Binance co-founder Changpeng “CZ” Zhao has publicly criticized Peter Schiff’s plan to introduce a tokenized gold product. CZ called the idea a “trust me bro” asset, arguing it depends on third-party custody rather than true on-chain ownership. Schiff, known for his anti-Bitcoin views, claims the new token will allow users to store and spend gold digitally. The announcement has reignited debate between traditional gold advocates and crypto supporters.
CZ Questions the Trust Behind Tokenized Gold
Changpeng Zhao, former CEO of Binance, raised concerns about the reliability of Peter Schiff’s new gold-backed token. In a post on X, CZ argued that tokenized gold is not truly stored on-chain. He said, “It’s tokenizing that you trust some third party will give you gold at some later date… even after their management changes, maybe decades later, during a war.”
CZ emphasized that the model Schiff proposed relies on centralized custody. The token’s value depends on the promise that users can redeem the gold in the future. He believes this setup goes against the principles of decentralization and trustless systems that blockchain aims to provide.
Schiff Introduces Gold-Backed Digital Asset
Peter Schiff, a well-known economist and gold advocate, recently announced a plan to launch a gold-backed token. Speaking on the ThreadGuy podcast, he said the token will allow users to store gold in a vault through a mobile app. Ownership will be transferred via blockchain, and users will also have the option to redeem physical gold.
Schiff explained that debit cards will be linked to users’ gold holdings. This would enable them to spend gold digitally in a way that resembles using a bank account. He described it as a modern way to use gold without converting it to fiat currency first.
Bitcoin Still Has No Value, Says Schiff
During the same podcast, Schiff repeated his long-standing position on Bitcoin. He said Bitcoin has no intrinsic value and predicted it will eventually “go to zero.” Schiff called it a “gigantic pump-and-dump,” claiming that early investors profit while new ones lose.
He also criticized the public for being easily influenced. “I still think it’s going to zero,” Schiff stated. “What I underestimated was the gullibility of the public and the marketing savvy of those promoting it.”
Schiff Predicts Dollar Collapse and a Return to Gold
Schiff warned of a coming sovereign debt crisis that he says could surpass the 2008 financial crash. He forecast hyperinflation in the United States, a collapse in US Treasury bonds, and a sharp rise in gold prices—possibly over $4,000 per ounce.
He also said the US dollar is losing its position as the world’s reserve currency. According to Schiff, central banks around the world are selling US Treasurys and buying more physical gold. He believes this shift marks a global move back to a gold-based monetary system, similar to the period following the end of the gold standard in the 1970s.
Gold Market Sees Sharp Decline Despite Demand
Despite Schiff’s strong support for gold, the metal recently experienced one of its steepest drops in a decade. According to The Kobeissi Letter, gold lost $2.5 trillion in market value within just 24 hours. Prices dropped by 8% over two days, marking the worst decline since 2013.
This sharp fall followed a surge earlier in the year when gold rose by 60% amid growing inflation fears and global instability. The correction raised concerns among investors who viewed gold as a safe-haven asset during uncertain times.
