CZ Criticizes Peter Schiff's Tokenized Gold as a 'Trust Me Bro' Asset

Peter Schiff reiterated his stance that Bitcoin is destined to “go to zero” while forecasting a shift back to a gold-based monetary system as the US dollar’s reign as the global reserve currency wanes.

Binance’s co-founder, Changpeng “CZ” Zhao, dismissed Schiff’s recent initiative to launch a tokenized gold product, labeling it a “trust me bro” asset.

On a recent post on social media, CZ argued that Schiff’s product is not true on-chain gold but a mere promise that relies on third-party custody. He elaborated, “Tokenization suggests reliance on a third party to deliver gold at an uncertain future date, potentially decades later or post-management changes, perhaps during crises.”

CZ shared his thoughts following Schiff’s announcement of plans to create a gold-backed token during a podcast appearance. Schiff claimed users would be able to purchase, store, and redeem gold via an app, also linking transactions to blockchain technology. He termed this as facilitating effortless digital spending of gold and with associated debit card services.

CZ dismisses Schiff’s tokenized gold. Source: CZ

Bitcoin to Decline to Zero: Schiff contemplates

Schiff maintains his long-held belief that Bitcoin has no inherent value and will ultimately “go to zero”. He remarked that the cryptocurrency is simply a “gigantic pump-and-dump” scheme benefitting early investors at the cost of newcomers.

He warned of an impending “sovereign debt crisis” potentially worse than that of 2008, predicting hyperinflation, a collapse in US Treasury bonds, and significant increases in gold prices beyond $4,000 per ounce. According to Schiff, the dominance of the US dollar as the global reserve currency is on the verge of ending, asserting that the financial system is likely to return to gold as foreign central banks begin moving away from US Treasuries to acquire physical gold, indicating a monetary reset reminiscent of the post-Nixon era in the 1970s.

Gold’s Market Value Plummets by $2.5 Trillion

Recently, gold experienced a dramatic market crash, losing about $2.5 trillion in market capitalization in just 24 hours, marking one of its most severe downturns in decades. The sell-off followed a spike where gold prices rose by 60% as investors faced inflation fears and global instability.