CZ clashes with Peter Schiff over the tokenized Gold plan

Binance co-founder Changpeng Zhao, also known as CZ, has clashed with Bitcoin critic Peter Schiff over claims he made about tokenized gold.

The confrontation stemmed from comments Schiff made in a live stream with Threadguy that he is planning a blockchain-based platform to launch a tokenized gold product that would have an edge over Bitcoin.

“Because gold will retain its purchasing power, ideally the only thing that makes sense to put on a blockchain is gold,” he said.

Schiff added that his tokenized gold product will “do all the things that Bitcoin promises but can never do.” that traders could purchase the tokenized gold through a platform called SchiffGold.

“And then you can transfer the amount of gold immediately and at a very low cost,” he said. “Much cheaper and much faster than you can transfer Bitcoin. You can pay or be paid in gold. And you can redeem it into physical gold or eventually into a token.”

CZ says tokenized gold tokens are a ‘Trust Me Bro’ product

CZ disagreed with Schiff’s comments about X.

“Most people ‘in crypto’ know this, most people ‘not in crypto’ may not understand it yet,” he said. “Tokenizing gold is NOT ‘on chain’ gold.”

He explained that tokenizing gold means trusting that a third party will give you gold at a later date, “even after their management has changed, perhaps decades later, during a war, etc.”

“It’s a ‘trust me bro’ token,” he said, arAssuming the level of trust needed around tokenized gold is the reason no “gold coins” actually took off.

Stating the obvious. Most people “in crypto” know this, most people “not in crypto” may not understand it yet.

Tokenizing gold is NOT “on chain” gold.

It symbolizes that you trust that a third party will give you gold at a later date, perhaps even after their management changes… https://t.co/KMYfz2dG04

— CZ 🔶BNB (@cz_binance) October 23, 2025

Gold is experiencing its worst correction in years

After hitting multiple all-time highs this year, gold experienced its strongest correction in years this week.

This pullback saw gold prices drop from a high of $4,381 to a weekly low of $4,1115, leading to a loss of $2 trillion in market capitalization.

But Schiff continues to argue that the metal is a better choice than BTC.

“If gold can fall 6.5% in one day due to panic selling, imagine what could happen to Bitcoin,” he says said on X. “Such a crash may not be imaginary for long.”

Schiff said the drop in gold prices will not result in capital rotation into Bitcoin, as many analysts predict, and instead predicted that the drop “could trigger a mass exodus from Bitcoin.”

Rather than gold’s sharp correction triggering widespread rotation into Bitcoin, it could trigger a mass exodus from Bitcoin. Watch below!

— Peter Schiff (@PeterSchiff) October 22, 2025

Bitcoin, meanwhile, is up more than 1% in the past 24 hours trade for $109,563.88 as of 6:03 a.m. EST.

CZ predicts that Bitcoin will surpass gold’s market cap

Early this week, the founder of Binance predicted that Bitcoin could eventually surpass gold’s market cap.

Top assets by market capitalization (Source: CompaniesMarketCap)

According to CompaniesMarketCap, gold’s capitalization is over $28.77 trillion, making it the most valuable asset in the world. Bitcoin’s capitalization is approximately $2.18 trillion, making it classified as the eighth largest asset in the world and greater than Facebook parent Meta and Saudi Aramco.

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