As the GENIUS Stablecoin Act advanced through the House, Peter Schiff dismissed USD-pegged assets as "flawed" tokens tied to a falling currency.
Peter Schiff has criticized the USD stablecoin just as the stablecoin bill aka GENIUS Act moves through the House, referring to what he calls 'false' dollar tokens.
Schiff's comments come as US President Donald Trump has asked House members to quickly pass the bill so he can sign it into law immediately.
While many experts believe that USD-pegged stablecoins will promote dollar supremacy, Schiff emphasized that fiat currency itself is losing value.
Peter Schiff advocates Gold Stablecoins over USD Stablecoins.
A day earlier, US President Donald Trump personally endorsed the GENIUS Stablecoin bill, adding that it would "make America the undisputed leader in digital assets." Expressing strong skepticism, these tokens will not fare well when the US dollar itself is losing its value. In his message on the X platform, Schiff wrote:
“I get Bitcoin, but not U.S. dollar stablecoins. If you’re going to introduce a third party custodian, why settle for a token backed by a flawed fiat currency like the dollar, when you can own one backed by gold?”
Peter Schiff added that gold-backed stablecoins offer the same liquidity as USD stablecoins but the added benefit of being a store of value. Schiff highlighted that stablecoins are primarily used for cryptocurrency trading, rather than serving as a tool for broader economic transactions.
Fred Krueger shatters the chef myth.
While Peter Schiff believes that stablecoins will not contribute to broader economic transactions, noted Bitcoin investor Fred Kruger believes that the House's passage of the Genius Act will change the game of how transactions are made.
Kroger noted that in the next 12 months, major e-commerce companies, starting with Amazon, will begin accepting stablecoins. Last week, Shopify announced a partnership with Coinbase and Stripe to facilitate stablecoin payments.
He attributes this change to the regulatory clarity provided by the GENIUS Act, which ensures:
Compliance with AML and KYC requirements.
Consumer confidence through safety assurances.
Possible incentives and discounts for adoption.
Key benefits for cross-border shipping.
Kruger believes the development of a stablecoin will be transformative for the crypto-economy, comparing it to the dot-com boom of 1999.
