CZ and Peter Schiff Clash Over Bitcoin and Tokenized Gold at Binance

• Tokenized gold ties digital ownership to physical reserves, while Bitcoin relies on decentralization and scarcity.
• The debate centers on whether asset value comes from tangible backing or network-based adoption.
• Bitcoin and tokenized gold show contrasting approaches to payments, trust, and long-term value.

At Binance Blockchain Week 2025, a public discussion between Binance founder Changpeng “CZ” Zhao and Euro Pacific Asset Management CEO Peter Schiff highlighted disagreements over Bitcoin’s role in the global financial system and the viability of tokenized gold as an alternative digital asset.

The exchange focused on whether digital assets derive value from technology, scarcity, or underlying physical backing. Schiff presented his tokenized gold project, explaining that each token represents direct legal ownership of fully allocated physical gold stored in vaults. According to Schiff, tokenization improves gold’s divisibility and transferability while preserving its connection to tangible reserves. He argued that this structure allows ownership to change hands without moving the metal, making gold usable in digital transactions.

Zhao acknowledged that tokenized gold improves on physical gold in terms of portability and settlement speed but emphasized that such systems require trust in custodians and issuers. In contrast, he said Bitcoin operates without reliance on third parties, allowing users to verify ownership and transfers directly on the blockchain.

Dispute Over Utility and Value

Zhao argued that Bitcoin’s lack of physical form does not negate its value, comparing it to digital services such as internet platforms that operate without tangible assets. He noted that Bitcoin exists as a ledger of transactions rather than discrete objects, yet remains verifiable and transferable across borders. Schiff countered that Bitcoin transfers do not convey ownership of any real-world asset, while tokenized gold represents claimable metal with industrial, monetary, and reserve uses.

Schiff stated that gold’s long-term value is supported by central bank reserves, industrial demand, and its resistance to decay. He added that Bitcoin’s price depends on continued demand rather than underlying utility. Zhao responded that Bitcoin’s scarcity, global adoption, and growing user base support its valuation, even amid volatility.

Payments, Adoption, and Market Performance

The discussion also covered payment use cases. Zhao cited examples of individuals using crypto to reduce transaction times and improve access to financial services. Schiff agreed that blockchain payment rails are effective but argued that such benefits do not depend on Bitcoin specifically and can be achieved with stablecoins or tokenized commodities.

Schiff pointed to Bitcoin’s performance relative to gold, stating that Bitcoin has declined in gold-denominated terms over the past four years, despite increased institutional exposure, including the adoption of ETFs and corporate treasuries. Zhao questioned the emphasis on a single timeframe and said Bitcoin’s broader adoption trend remains intact.

The debate concluded without a consensus. Schiff maintained that tokenized gold offers stability through physical backing, while Zhao said Bitcoin’s decentralized design and global demand provide distinct advantages. Both acknowledged ongoing experimentation in digital finance, underscoring continued divergence in views on how value is defined in the evolving asset market.