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Economist Peter Schiff directly opposes the U.S. government on the future of stablecoins. While Washington counts on these cryptocurrencies to strengthen the dollar, Schiff predicts the opposite. But is he right to worry?
In brief
Peter Schiff challenges the idea that stablecoins will preserve the dominance of the U.S. dollar.
The economist believes their main use will remain crypto trading, not international payments.
Growing budget deficits and inflation could erode demand for dollar-pegged stablecoins.
This criticism comes as the U.S. Senate has just passed the GENIUS stablecoin law.
Washington believes in stablecoins, Schiff reveals another truth
Peter Schiff doesn’t beat around the bush. Last Wednesday, the economist known for his strong views publicly questioned the enthusiasm around stablecoins.
His message is clear: these digital assets will not save the U.S. dollar.
“The increase in federal budget deficits and higher inflation will erode demand for non-interest-bearing stablecoins pegged to the U.S. dollar,” he asserts on X.
For Schiff, the primary use of these tokens will remain limited to trading pairs with other cryptos. A vision that contrasts sharply with the optimism displayed by the Trump administration.
This stance comes in a particular context. The U.S. Senate has just overwhelmingly passed the GENIUS law (68 votes for, 30 against), a bill Donald Trump wants ratified “at lightning speed” by the House of Representatives.
Treasury Secretary Scott Bessent even bets on a market of $3.7 trillion by 2030.
Schiff’s detractors are not silent. Frederick Frost, a user on X, highlights the growing use of stablecoins in countries affected by hyperinflation.
Individuals exchange their devalued fiat currencies for USDT to preserve their purchasing power.
An argument dismissed by Schiff who suggests these populations could just as well turn to gold-pegged tokens or other currencies.
An analysis that questions economic fundamentals
Schiff’s analysis is based on real economic problems. The United States has massive public debts and inflation remains high. In this context, the economist thinks people will abandon stablecoins that yield no interest.
Yet current figures tell a different story. More than 161 million people already own stablecoins worldwide. In April 2025, transactions reached $717 billion. These numbers show that usage already far exceeds simple speculation on cryptos.
Schiff remains consistent in his views. Since 2022, he has opposed overly strict regulations on stablecoins. He prefers to “let the market regulate them freely” with competition among issuers and independent controls. This liberal stance contrasts with Washington’s regulatory race.
The issue is becoming global. Apple, Google, and Airbnb are quietly testing the integration of stablecoins in their services. Standard Chartered even predicts the market could absorb $1.6 trillion of U.S. Treasury bonds by 2028. These gigantic amounts far exceed the simple crypto trading predicted by Schiff.
The debate sparked by Peter Schiff reveals the blind spots of an ongoing financial revolution. While stablecoins appeal to businesses and lawmakers, their real ability to support the dollar’s hegemony remains to be seen. Between political optimism and economic realism, the future of these digital assets will be written in the coming months.
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Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
