Euro Pacific Asset Management Chief Economist Peter Schiff has once again expressed his skepticism toward dollar-pegged stablecoins, arguing that gold-backed tokens provide a real store of value.
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? You get the same liquidity, but you also get a real store of value.
— Peter Schiff (@PeterSchiff) June 19, 2025
This is not the first time that Peter Schiff shared his criticism of cryptocurrency. Earlier, he warned Americans of the possible repercussions of a Bitcoin bubble burst, saying in his podcast that, “We’ve got the lion’s share of this bubble. So when the Bitcoin and crypto bubble pops, where it does the most harm is in the U.S.”
The U.S. economy is currently facing turbulence due to high inflation and financial uncertainty. Additionally, President Donald Trump has waged a global tariff war, which is likely to weaken the USD’s dominance. This may be why Peter Schiff called the USD a ‘flawed fiat currency.’
Stablecoin Market on the Rise After Senate Approval of GENIUS Act
His statement comes amid the growing adoption of stablecoins, with the market currently standing at $251.88 billion. On June 17, the U.S. Senate cleared the GENIUS Act, which is the country’s first federal legislation specifically to provide regulatory guidelines for USD-pegged stablecoin.
U.S. regulators and lawmakers are quite confident about stablecoins, giving one statement after another in favor of USD-backed digital assets.
Treasury Secretary Scott Bessent said that stablecoins can help the USD regain its supremacy. He has also burst the myth around cryptocurrency for those who think it is a threat to the dollar.
Scott Bessent stated in a post on X, writes, “Crypto is not a threat to the dollar. In fact, stablecoins can reinforce dollar supremacy. Digital assets are one of the most important phenomena in the world right now, yet they have been ignored by national governments for far too long.”
“This administration is committed to establishing the United States as a hub for digital asset innovation, and the GENIUS Act moves us one step closer to that goal,” he added further.
After the Senate approval for the GENIUS Act, Senator Cynthia Lummis said, “The Senate took a critical step toward securing U.S. Dollar dominance by passing the bipartisan GENIUS Act. I look forward to working with my colleagues on comprehensive market structure legislation to protect consumers & ensure America’s place as the crypto capital of the world.”
According to Finextra Research, stablecoins are likely to become the leading payment instrument, which will boost their total market capitalization beyond $3.4 trillion. The report suggests that stablecoins are expected to hit $180 billion in 2024 and could surge to $900 billion by 2025 as the demand for stablecoins grows.
Earlier, the CEO of Bank of America, Brian Moynihan, disclosed that the bank is preparing to launch its own dollar-pegged stablecoin.
Suren Hayriyan, the president of Next Generation, stated in the report, “2024 has become a turning point for the entire fintech industry, and for stablecoins in particular. Major growth drivers have been determined in the current year, and for at least the next 5-year period.”
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