Renowned cryptocurrency critic Peter Schiff discussed a new RWA product, only to face sharp criticism from Binance founder Changpeng Zhao (CZ).
Schiff Gold is developing an application for purchasing physical gold with subsequent tokenization of ownership rights, Schiff stated in a recent interview.
According to him, users will be able to make payments in portions of precious metal using debit cards. He described gold as the “perfect asset for blockchain” and tokenization as a “bridge between traditional values and the digital economy.”
“Now all of you can carry precious metal in your smartphone,” he noted.
CZ criticized the idea, emphasizing that tokenized gold is “backed by empty promises.”
“Tokenized gold is not an on-chain asset. You digitize trust that some third party will eventually give you precious metal — even after management changes, possibly decades later, during a war, and so on. […] That’s why no gold coin has become popular,” he wrote.
Schiff responded that intermediaries are a normal part of any market. He stated, “People have trusted third parties to store gold for centuries.” As an example, he cited Brinks, which has held precious metal for over 160 years and “hasn’t lost an ounce.”
“Tokenized gold works the same way as stablecoins. Does this mean you are against the entire industry as a whole?” he added.
Bloomberg analyst Eric Balchunas noted that the structure proposed by Schiff already exists in traditional finance:
Later, Schiff proposed a full debate with CZ, launching a poll among followers on who should moderate. Contenders include Elon Musk, Joe Rogan, Tucker Carlson, and Russell Brand.
On October 23, U.S. President Donald Trump pardoned the founder of Binance. The politician stated that Zhao was “persecuted” by the administration of former U.S. President Joe Biden.
Answering journalists’ questions, Trump also noted that many supported CZ and had long recommended his pardon.
“You mean that crypto guy? Many say he’s done nothing wrong. I don’t know him, and I don’t think I’ve ever met him. They say what he did isn’t even a crime… so I pardoned him at the request of many very good people,” he said during a press conference.
Representatives of the U.S. Democratic Party criticized the president’s decision. Congresswoman Maxine Waters accused Trump of corruption.
“The pardon of Changpeng Zhao, who pleaded guilty to money laundering and facilitating suspicious operations involving drug dealers and terrorists, is a shocking but predictable reflection of [Trump’s] presidency, defined by corruption, personal gain, and loyalty to criminals rather than the interests of the American people,” she stated.
Senator Elizabeth Warren joined Waters. The official emphasized that CZ received a pardon for lobbying the president’s crypto projects.
Zhao responded to the attacks, stressing that Warren “can’t get her facts right when making a public statement about a person’s charges.” The Binance founder added that it was Warren who declared war on the crypto industry five days before his sentencing.
“Need a more vivid example of the Biden DOJ’s weaponization against the crypto market?” he concluded.
The exchange permanently barred CZ from management, but Richard Teng noted that Zhao remains the platform’s largest shareholder.
