Seasoned Bitcoin (BTC) critic and "gold bug" Peter Schiff released a statement about Terra Foundation's aggressive Bitcoin (BTC) purchasing policy and the technical design of UST stablecoin.
Peter Schiff proposes crypto gold standard for the first time, Do Kwon rejects
Mr. Schiff has taken to Twitter to cricitize the idea that Terra's native USD-pegged stablecoin, UST, can be backed by Bitcoin (BTC). According to him, this scenario is not sustainable.
Backing #UST with #Bitcoin is not a #crypto version of the #gold standard. It's nothing like the way US dollars were once backed by gold. Backing one crypto with another is worse than backing euros with dollars. Replicating a crypto gold standard is easy. Just back UST with gold!— Peter Schiff (@PeterSchiff) April 1, 2022
This design—when "one cryptocurrency is backed by another"—looks even worse than backing Euros with U.S. Dollars for Mr. Schiff. It should not be treated as an instrument equal to Gold-backed fiat money.
At the same time, creating a "crypto gold standard" is not a complicated task for Mr. Schiff. He proposes just backing UST stablecoin with Gold reserves.
Do Kwon, founder and CEO of Terraform Labs, the development studio behind Terra (LUNA) blockchain and UST stablecoin, is not excited by the proposal:
Would rather die tbh.
It should be noted that Terra's solution to increase Bitcoin (BTC) reserves has already sent the LUNA price to new historic highs.
Is Peter Schiff the real Satoshi?
Key figureheads of Web3 and cryptocurrencies commented on this eccentric dialogue. While Anthony Pompliano of Morgan Creek Digital just called it "savage," Binance CEO Changpeng Zhao mocked Peter Schiff. Ironically, he compared Peter Schiff to Satoshi Nakamoto, anonymous creator of Bitcoin (BTC):
Peter may be Satoshi, because he does a good job pretending not to understand #bitcoin. (Apr 1)
As we previously reported, Terra's Anchor Protocol yesterday reached $12 billion in TVL in UST deposits.