Peter Schiff, a long-time critic of Bitcoin (BTC) and the “gold bug,” issued a comment regarding the Terra Foundation’s aggressive Bitcoin (BTC) purchasing policy and the technical design of the UST stablecoin. Mr. Schiff has slammed the concept that Terra’s native USD-pegged stablecoin, UST, may be backed by Bitcoin on Twitter (BTC). This scenario, he believes, is unsustainable.
For Mr. Schiff, this design—in which “one cryptocurrency is backed by another”—appears to be even worse than backing Euros with US Dollars. It should not be considered a substitute for gold-backed fiat money. Creating a “cyber gold standard,” on the other hand, is not a difficult task for Mr. Schiff. He advocates only using gold reserves to underpin the UST stablecoin.
The plan does not excite Do Kwon, the creator and CEO of Terraform Labs, the development studio behind the Terra (LUNA) blockchain and UST stablecoin. It’s worth noting that Terra’s solution to boost Bitcoin (BTC) reserves has already pushed the LUNA price to new all-time highs.
This strange conversation drew the attention of key figures in Web3 and cryptocurrencies. While Morgan Creek Digital’s Anthony Pompliano described it as “savage,” Binance CEO Changpeng Zhao mocked Peter Schiff. “Peter may be Satoshi, because he does a wonderful job pretending not to grasp #bitcoin,” he said, ironically comparing Peter Schiff to Satoshi Nakamoto, the mysterious founder of Bitcoin (BTC).
Read more: Terra acquires USD 125 million worth of Bitcoin as a reserve
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