Growing attention to the long-delayed Fort Knox audit is reigniting the debate between gold and Bitcoin. Binance founder Changpeng Zhao (CZ) once again took part in the discussion, questioning the verifiability of the yellow metal while responding to his longtime critic, Peter Schiff. Renewed interest in tokenized gold, combined with continued market uncertainty, has brought new momentum to the topic.
In brief
- CZ reignites the debate around the long-delayed Fort Knox audits, highlighting the limited transparency of gold in the face of open blockchain systems.
- The discussion highlights the scarcity of audits and physical constraints of gold, while digital assets offer public, instant verification.
- CZ rejects Schiff's proposal on tokenized gold, believing that reliance on custodians perpetuates old issues of trust and transparency.
- Growing demand for tokenized gold and economic uncertainties are driving interest, as gold prices advance amid financial stress.
CZ Slams Traditional Asset Verification Gaps After Audit Investigation
A recent exchange on CZ's remarks quickly circulated, with many questioning why comprehensive audits of U.S. gold reserves remain so rare.
The discussion resumed after a user asked: “What happened to the Fort Knox audit?” » Zhao responded that gold is difficult to verify, taking the opportunity to call out Schiff, who is known for asserting that Bitcoin has no intrinsic value.
According to the U.S. Treasury, the government holds 261.5 million troy ounces of gold, of which 147.3 million stored at Fort Knox. No comprehensive audit has been conducted for several decades, fueling recurring calls for more transparency around this immense state reserve.
CZ's concise remarks reignited pressure for a reassessment of the case, which had remained unanswered for years.
Zhao Rejects Schiff's Tokenized Gold Proposal, Citing Lingering Trust Issues
Gold remains widely perceived as a reliable store of value, but its physical nature poses verification challenges that digital assets circumvent. Access to the vaults is strictly limited, audits are rare and public visibility is almost non-existent.
Conversely, cryptocurrencies are based on transparent blockchains that record each transaction in real time. Anyone can verify the flows without special authorization, a degree of openness that precious metals cannot offer.
A central point of Zhao's reasoning rests on these differences:
- Instant verification is possible with digital assets, not with stored gold.
- Independent controls over crypto do not require privileged access.
- Gold must be inspected, tested and weighed manually.
- Public on-chain ledgers are accessible 24/7.
- Audits rely on intermediaries and official spot checks.
Schiff recently announced plans to launch a tokenized gold product, arguing that this model marries the stability of the metal with the convenience of digital assets.
CZ responded that any stored gold-backed token remains reliant on intermediaries and custodians. Even though the token circulates on the blockchain, the gold remains off-chain, perpetuating the same trust and verification issues.
According to him, gold retains its value, but remains impractical for everyday transactions, while Bitcoin combines portability and public verifiability.
Market interest keeps gold in the spotlight
The craze for tokenized gold has grown, exceeding $1 billion in daily volume on October 18. This demand was accompanied by a strong rebound in gold prices, in a context of growing public debt and financial instability. BlackRock CEO Larry Fink himself associated this movement with a loss of confidence in public finances and monetary policies.
Spot gold rose 0.7% to $4,005.21 an ounce on Friday, supported by a weakening dollar and the threat of a U.S. government shutdown, factors that are bolstering demand for safe-haven assets. December futures closed at $4,009.80 an ounce. Commerzbank analysts believe the asset should remain supported as long as global trade tensions persist.
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