Peter Schiff: China's Gold-Backed Crypto Would Be Bearish for Bitcoin

China launching a digital counterpart of the yuan backed by gold puts Bitcoin (BTC) at a disadvantage, veteran gold bug Peter Schiff claims. In a tweet on Nov. 2, Schiff, notorious for his cynicism when it comes to Bitcoin, attempted to counter criticism of his stance by Keiser report host, Max Keiser. 

Schiff tells Keiser: gold backing beats BTC

“According to @maxkeiser I'm an idiot because I think #gold is better money than #Bitcoin,” he wrote. 

Schiff also repeated his oft-quoted idea that Bitcoin has no intrinsic value: 

“He also claims China is about to launch a crypto currency backed by gold. This is bullish for gold and bearish for Bitcoin. A crypto backed by gold is much better than one backed by nothing!”

Keiser did not respond publicly, having kept a markedly low profile on social media throughout October.

Official hints at gold role

As Cointelegraph reported, China appears to be advancing efforts to issue a digital currency in the wake of Facebook’s own token, Libra. 

Its backing remains uncertain, with an ex-Congress official last month suggesting it would come in the form of a peg to China’s gold reserve among other factors. 

China’s recent endorsement of blockchain technology meanwhile appeared to have an instant positive impact on Bitcoin markets. Nonetheless, local media subsequently tempered the hype, advising citizens not to take the support as proof of a change of stance regarding cryptocurrency. 

Beijing outlawed cryptocurrency trading in September 2017, a situation which officially remains the same despite rumors that investors are using different on-ramps to gain access.