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06/21 13:27

Economist Peter Schiff has cooled enthusiasm regar

Economist Peter Schiff has cooled enthusiasm regarding claims that stablecoins pegged to the dollar will support the US's status as a reserve currency.

In a post on X, he argues that such tokens remain little more than a crypto trading tool, not a bridge to traditional finance. With Washington’s deficit widening and inflation continuing, Schiff argues that the appetite for interest-free digital dollars will fade; investors looking for a hedge “ will not settle for a token that yields nothing while purchasing power deteriorates .”

Schiff also warned that political pressure from President Trump on Fed Chairman Jerome Powell could backfire. He said cutting rates under pressure would appear politically motivated rather than economically justified, something the central bank would resist.

Not everyone is skeptical. Treasury Secretary Scott Besant recently described stablecoins as a tool to reinforce the dominance of the dollar, noting that they are typically backed by U.S. Treasury bonds, which could potentially increase demand for government debt. He argued that clear rules like those in the GENIUS Act could attract millions to a dollar-based digital economy.

The debate leaves stablecoins between two opposing viewpoints: critics who consider them vulnerable, unprofitable copies of a strained currency, and officials who see them as the next link in the global dollar chain.IMG-20250621-WA0095.jpg

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