Terra’s UST criticized by Peter Schiff, here’s why

Veteran Bitcoin (BTC) critic and “gold bug” Peter Schiff has issued a statement on the Terra Foundation’s aggressive Bitcoin (BTC) buying policy and the technical design of the UST stablecoin.

Peter Schiff Proposes Crypto Gold Standard For The First Time, Do Kwon Rejects

Mr. Schiff took to Twitter to criticize the idea that Terra’s native USD-backed stablecoin, UST, can be backed by Bitcoin (BTC). According to him, this scenario is not tenable.

Support #UST with #Bitcoins is not a #crypto version of the #gold Standard. It has nothing to do with how US dollars were once backed by gold. Backing one crypto with another is worse than backing euros with dollars. Replicating a crypto gold standard is easy. Just back UST with gold!

— Peter Schiff (@PeterSchiff) April 1, 2022

This design – when “one cryptocurrency is backed by another” – looks even worse than backing euros with US dollars to Mr. Schiff. It should not be treated as an equal instrument to gold-backed fiat currency.

At the same time, creating a “crypto gold standard” is not a complicated task for Mr. Schiff. It simply offers to back the UST stablecoin with gold reserves.

Do Kwon, founder and CEO of Terraform Labs, the development studio behind the Terra (LUNA) blockchain and UST stablecoin, isn’t keen on the proposal:

I would rather die.

It should be noted that Terra’s solution to increase Bitcoin (BTC) reserves has already sent the LUNA price to new all-time highs.

Is Peter Schiff the real Satoshi?

Web3 and cryptocurrency figureheads commented on this eccentric dialogue. While Morgan Creek Digital’s Anthony Pompliano just called him “savage,” Binance CEO Changpeng Zhao poked fun at Peter Schiff. Ironically, he compared Peter Schiff to Satoshi Nakamoto, anonymous creator of Bitcoin (BTC):

Peter may be Satoshi, because he does a good job of pretending not to understand #bitcoin. (April 1st)

As we previously reported, Terra Anchor Protocol hit $12 billion in TVL yesterday in UST filings.