Binance co-founder Changpeng “CZ” Zhao has criticized economist and long-time Bitcoin critic Peter Schiff over his plan to launch a tokenized gold product, calling it a “trust me bro” asset that lacks true decentralization.
CZ Pushes Back on Schiff’s Gold Token
In a Thursday post on X (formerly Twitter), CZ said Schiff’s gold-backed token relies on third-party custody rather than blockchain verification.
He argued that such assets contradict crypto’s core principle of trustless systems, emphasizing that “tokenized gold isn’t on-chain gold.”
Schiff Doubles Down on Gold, Predicts Bitcoin’s Demise
Schiff announced the upcoming gold-backed token on the ThreadGuy podcast, explaining that users will be able to buy, store, and transfer gold through an app, redeem it for physical bullion, or spend it digitally via debit cards linked to their gold holdings.
He once again dismissed Bitcoin (BTC) as a speculative bubble, claiming it has “no intrinsic value” and will “eventually go to zero.”
“What I underestimated was the gullibility of the public and the marketing savvy of those promoting it,” Schiff said.
Schiff also warned of a looming sovereign debt crisis that could trigger hyperinflation, a collapse in U.S. Treasurys, and gold soaring beyond $4,000 per ounce.
His comments come just days after gold’s sharpest crash in over a decade, wiping out $2.5 trillion in market value within 24 hours. The metal fell 8% over two days, its worst performance since 2013, according to The Kobeissi Letter.
Despite the sell-off, Schiff argued the global financial system is shifting back toward gold, claiming foreign central banks are quietly replacing Treasurys with bullion — a trend he says marks an inevitable “monetary reset.”
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