Peter Schiff Doubts Stablecoins Can Shield a Weakening Dollar

Economist Peter Schiff has poured cold water on claims that dollar-pegged stablecoins will buttress America’s reserve-currency status.

Writing on X, he argued that such tokens remain little more than plumbing for crypto trades, not a bridge to mainstream finance. As Washington’s deficit widens and inflation lingers, Schiff says appetite for non-interest-bearing digital dollars will fade; investors looking for a hedge “won’t settle for a token that pays nothing while purchasing power erodes.”

Schiff also warned that political pressure from President Trump on Fed Chair Jerome Powell could backfire. A rate cut made under duress, he claims, would look politically driven rather than economically justified—something he believes the central bank will resist.

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Not everyone is skeptical. Treasury Secretary Scott Bessent recently called stablecoins a tool for reinforcing dollar dominance, noting they are typically collateralized with U.S. Treasuries—potentially boosting demand for government debt. He argues that clear rules such as those in the GENIUS Act could usher millions into a dollar-based digital economy.

The debate leaves stablecoins caught between two narratives: critics who see them as vulnerable, zero-yield replicas of a strained currency, and officials who view them as the next link in the dollar’s global chain.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.