Changpeng Zhao, better known as CZ, the co-founder and former CEO of Binance, has publicly criticized Peter Schiff’s proposal to introduce a tokenized gold product. In a recent post on X (formerly Twitter), CZ characterized Schiff’s tokenized gold as a “trust-me-bro” asset, emphasizing its dependence on third-party custodianship rather than genuine onchain ownership.
CZ explained that tokenized gold does not represent actual gold held on the blockchain but instead constitutes a promise that a third party will deliver physical gold at some future point. He highlighted the risks involved, noting that trust in these custodians might falter over time due to management changes or adverse events such as war.
These comments followed Schiff’s announcement on the ThreadGuy podcast regarding his intent to launch a blockchain-based gold-backed token. Schiff described the product as a digital solution allowing users to purchase and securely store gold in a vault, transfer ownership via blockchain technology, and redeem tokens for physical gold. His vision also includes debit cards linked directly to users’ gold holdings, aimed at simplifying spending with gold in everyday transactions.
Peter Schiff, a well-known advocate for gold and vocal critic of Bitcoin (BTC), reiterated his longstanding view that Bitcoin lacks intrinsic value and will ultimately become worthless. He labeled Bitcoin a large-scale “pump-and-dump” scheme, alleging that early adopters benefit by selling off their holdings at the expense of newcomers.
“I still think it’s going to zero,” Schiff stated, adding that he had previously underestimated the public’s willingness to believe in Bitcoin and the marketing strategies employed by its promoters.
Beyond cryptocurrency, Schiff issued warnings about an impending sovereign debt crisis he anticipates will surpass the 2008 financial meltdown. He forecasted hyperinflation and a collapse in U.S. Treasury bond values, alongside a surge in gold prices potentially exceeding $4,000 per ounce. According to Schiff, the global dominance of the U.S. dollar as the primary reserve currency is declining. He asserted that foreign central banks are gradually reducing their U.S. Treasury holdings in favor of increasing physical gold reserves, signaling a broader “monetary reset” similar to the shift that followed the 1970s post-Nixon era.
Recent market volatility has impacted gold’s value significantly. Earlier in the week, gold experienced one of its sharpest declines in decades, dropping roughly 8% over two days and erasing about $2.5 trillion in market capitalization—the largest one-day loss since 2013. This steep fall came after a strong rally where gold gained approximately 60% in response to inflationary pressures and geopolitical uncertainties during the year.
CZ’s skepticism about tokenized gold highlights ongoing debates within the crypto and traditional finance communities regarding the nature of asset-backed tokens and the trust models that underpin them. Schiff’s ambitions to merge gold with blockchain technology epitomize a growing trend to digitize precious metals, aiming to combine the stability of gold with the convenience of blockchain-based transactions.
