Schiff criticizes USD-pegged stablecoins for inheriting fiat currency vulnerabilities like inflation and political risk. He argues gold’s intrinsic value and historical stability make it superior collateral, especially amid potential dollar devaluation. This stance aligns with his long-standing gold advocacy and skepticism toward fiat systems.
The economist specifically plans to launch a gold-backed stablecoin, viewing it as a hedge against both crypto volatility and traditional finance instability. His model would likely involve verifiable gold reserves audited transparently—addressing trust issues plaguing some algorithmic stablecoins.
This approach challenges the crypto industry’s dollar-centric models but faces adoption hurdles. Gold’s physical settlement complexities and price fluctuations could complicate parity maintenance compared to fiat-backed alternatives.
