**Changpeng Zhao (CZ) Responds to Peter Schiff’s Tokenized Gold Plans**
Changpeng Zhao (CZ), founder and former CEO of Binance, recently weighed in on news surrounding gold proponent Peter Schiff’s announcement of a tokenized gold product. While Schiff is known for his skepticism toward Bitcoin (BTC), this new move marks a notable shift in his approach—embracing blockchain technology to make gold more accessible and transferable. However, CZ remains unconvinced by the idea.
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### CZ Critiques the Tokenized Gold Concept
Peter Schiff’s plan to launch a tokenized gold product signals an effort to modernize gold investment by leveraging blockchain. Despite this, CZ argues that the concept falls short of true innovation. He points out that tokenized gold often amounts to little more than a digital claim on physical gold stored by a central custodian. Investors don’t actually hold the gold “on-chain,” meaning the system relies heavily on trust in a third party, much like a bank promising to return deposits.
CZ highlights the potential risks: if the issuer faces bankruptcy, hacking incidents, or ownership changes, the supposed guarantees of tokenized gold could fail. While physical gold itself endures through crises, the promises made by intermediaries do not always hold up in times of war or economic chaos. For this reason, CZ dismissed the product as a “trust me bro” token, explaining that this lack of decentralized trust is why tokenized gold projects have historically struggled to gain traction.
This exchange underscores a broader debate about blockchain’s promise. Schiff’s tokenized gold sells convenience wrapped in a traditional asset class, but CZ reminds the community that genuine blockchain innovation should minimize reliance on centralized trust.
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### Peter Schiff Faces Criticism Amid Gold Price Decline
Schiff’s tokenized gold plans come at a challenging time, as gold prices plunged to record lows on Wednesday, October 22, 2025. Veteran crypto trader Peter Brandt took a lighthearted jab at Schiff, sharing a historical gold price chart to illustrate the precious metal’s volatile and often frustrating price history.
Despite an average annual return of 3.6% over the last 45 years, gold has experienced prolonged and deep consolidations, making it a tough investment for many. Earlier this month, Schiff boldly predicted that gold could soar to $6,000 by Christmas, potentially outperforming Bitcoin and the S&P 500. However, gold’s recent decline to below $4,100 has sparked further criticism of his forecast.
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### Bitcoin Shows Signs of Recovery
In contrast to gold’s recent struggles, Bitcoin remains volatile but continues to display resilience. Over the past 24 hours, BTC price has increased modestly by 1.17%, reaching approximately $109,629. This ongoing recovery highlights the differing trajectories of traditional and digital assets amid current market conditions.
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**In summary**, Peter Schiff is embracing blockchain technology to innovate in the gold market, but Changpeng Zhao emphasizes that true innovation requires eliminating, not outsourcing, trust. Meanwhile, gold’s recent price drop challenges Schiff’s bullish forecasts as Bitcoin works to regain momentum.
https://u.today/cz-reveals-real-reason-tokenized-gold-has-not-taken-off
