All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- CZ criticizes Peter Schiff’s tokenized gold idea, calling it a “trust me bro” token that depends on third-party promises.
- He argues that real crypto assets must be verifiable on-chain, unlike gold tokens backed by traditional custodians.
Binance founder Changpeng Zhao (CZ) has reacted to Peter Schiff’s new tokenized gold announcement, calling the idea a “trust-me-bro” token. Schiff, a long-time critic of Bitcoin, revealed plans to launch a digital gold product that will allow users to buy, store, and transfer ownership of physical gold through an app.
Peter Schiff Backs Gold-Backed Tokens
In his post, Schiff explained that users will be able to purchase gold directly from their phones, with the metal stored securely in a vault. According to him, the platform will let holders transfer ownership of their gold to others or redeem it for the physical asset. Schiff said this would make gold more accessible and easier to trade without the need for traditional banking systems.
Schiff said tokenizing gold offers a modern way to use a time-tested store of value. The veteran investor also claimed it gives users the benefits of digital transfer without the risks he often associates with virtual currencies. Schiff’s supporters have welcomed the idea, seeing it as a bridge between traditional wealth and modern technology.
While the recent post was a short view, it is his long-standing view that digital money will only have meaning when tied to real assets like gold. He sees tokenized gold as the answer to the weaknesses of other cryptocurrencies that rely only on demand and belief.
However, Changpeng Zhao seems to have a different perspective. In fact, this is not the first time CZ and Peter Schiff have clashed over their opinions in recent times. For example, as noted in our earlier post, CZ responded to Schiff’s warning about a potential Bitcoin crash. With a hint of sarcasm, he pointed out that despite recent drops, Bitcoin has still outperformed gold over the years.
CZ Says Tokenized Gold Is Built on Trust, Not Ownership
Per the current update, CZ, the founder of Binance, replied with a different opinion. He said tokenized gold is not real gold on the blockchain but only a promise that depends on trust. According to him, people who buy these tokens do not own any physical gold. Instead, they rely on a company to keep and deliver it when asked.
CZ warned that this kind of setup is risky because anything could happen in the future. The company could close down, change owners, or even lose the gold. He said during wars or financial troubles, people might not be able to claim what they were promised. CZ called these assets “trust me bro” tokens and said that is why gold-based coins have never truly succeeded.
He also said the purpose of blockchain is to remove the need for middlemen, not to bring them back. His comments drew many reactions online, with several users agreeing that real crypto should not depend on trust. The debate showed again how divided opinions remain about mixing traditional assets like gold with blockchain systems.
Meanwhile, as highlighted in our previous news brief, Gold recently became the first asset in history to reach a value of $30 trillion. Notably, this milestone strengthens its position as one of the most important assets in the global financial system, supported by its steady growth and solid market performance.
