- Peter Schiff, previously a fierce Bitcoin critic calling it a national security threat, has softened his stance in 2025 saying he now “gets” Bitcoin.
- Schiff questions why anyone would trust stablecoins pegged to “flawed fiat currency like the dollar” and proposes creating his own gold-backed stablecoin.
- Gold-backed stablecoins currently hold only US$2 billion market cap compared to the total US$261 billion stablecoin market dominated by USD-pegged coins.
- Schiff’s comments follow the US Senate passing the GENIUS Act, the first major US cryptocurrency regulation, which Galaxy Digital’s CEO has welcomed.
Gold bug and economist Peter Schiff has a long and colourful history of dismissing Bitcoin. He called it a threat to US national security and has questioned Bitcoin-buying firms like MicroStrategy, saying their purchases would inflate the coin’s value.
But that’s so 2024. Now, in 2025, with more and more companies buying Bitcoin for their reserves, Schiff seems to have changed his opinion
In a post on CryptoTwitter (CT), the Chief Economist and Global Strategist at asset manager Euro Pacific said that he “gets” Bitcoin, but not USD-backed stablecoins.
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Why Trust Flawed Fiat Stablecoins, Asks Schiff
He essentially questioned why anyone would trust a stablecoin pegged to a “flawed fiat currency like the dollar”.
Instead, as you may have guessed, Schiff proposes creating his own gold-backed stablecoin. Apparently, the naming is already done for him, as one enthusiastic CT user suggested:
There are already several gold-backed stablecoins, although with much smaller market caps and daily volumes. The total stablecoin market currently has a market capitalisation of US$261 billion (AU$407 billion), according to CoinGecko, while gold-backed stablecoins account for only US$2 billion (AU$3.1 billion).
The largest gold-backed stablecoin is PAX Gold (PAXG), with a 24-hour volume of US$207 million (AU$323 million) and a market capitalisation of US$870 million (AU$1.3 billion).
This is dwarfed by the largest USD-pegged stablecoin, Tether (USDT), which has a daily volume of US$69 billion (AU$107 billion) and a market cap of US$155.9 billion (AU$243.3 billion).
Not Everyone Agrees With Schiff’s Reasoning
Schiff’s comments come just days after the US Senate passed the GENIUS Act, the first major US regulation concerning the asset class.
Not everyone is as sceptical as Schiff. Galaxy Digital CEO Michael Novogratz has welcomed the bill, saying he hopes the US will soon pass a market structure bill.
Schiff’s “I get Bitcoin comments” come just days after yet another round of shots against BTC. At the time he wrote about the superiority of silver and that “it makes no sense to buy Bitcoin when you can buy silver”.
Related: AUDD Launches Natively on Hedera, Pioneering Australian Dollar Stablecoin Innovation
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