Authored by Amin Haqshanas via CoinTelegraph.com,

Binance co-founder and former CEO Changpeng "CZ" Zhao dismissed crypto critic Peter Schiff's plan to launch a tokenized gold product, calling it a "trust me bro" asset.

In a Thursday post on X, CZ said tokenized gold is not onchain gold, but a promise dependent on third-party custody.

"It's tokenizing that you trust some third party will give you gold at some later date… even after their management changes, maybe decades later, during a war," he wrote.

CZ's comments came after Schiff, a long-time Bitcoin critic and gold advocate, announced plans on the ThreadGuy podcast to roll out a gold-backed token.

According to Schiff, users will be able to buy and store gold in a vault via an app, transfer ownership through a blockchain, or redeem it for physical gold.

He described it as an easier way to spend gold digitally, complete with debit cards linked to gold holdings.