Peter Schiff, a prominent gold advocate and Bitcoin critic, has sharply criticized U.S. dollar-pegged stablecoins amid discussions of new legislation in the U.S.
Critique of Dollar-Pegged Stablecoins
Schiff referred to the dollar as a 'flawed fiat currency', emphasizing the need for gold-backed stablecoins. He stated, 'I get Bitcoin, but not U.S. dollar stablecoins.' He argues that if introducing a third-party custodian, one should opt for tokens backed by gold instead of the dollar.
What are Stablecoins?
A stablecoin is a cryptocurrency whose price is pegged to a stable currency, primarily the U.S. dollar. This is typically achieved by holding a reserve of dollars and other assets that cover the cost of issued stablecoins. Crypto traders use stablecoins to enter and exit positions without needing to access fiat currencies directly.
Potential of the Stablecoin Market
The stablecoin market is currently dominated by dollar-pegged tokens such as USDT and USDC. Schiff's comments come as the U.S. Senate has passed the GENIUS Act to regulate stablecoins. The bill is expected to be signed into law by President Donald Trump in August, potentially impacting the growth of this sector, now valued at over $260 billion.
Peter Schiff's comments and the new Senate legislation reflect current trends and challenges in the stablecoin market, which may lead to significant changes in the field.
