The recent launch of a groundbreaking crypto-backed mortgage product has been (rather expectedly) lambasted by economist and financial commentator Peter Schiff.

He has warned that the new financial vehicle will drive up costs for homebuyers and significantly increase the risk of default.

“Crypto-backed mortgages increase the cost of buying homes. Not only must homebuyers pay interest on the home loans, but they also must pay interest on the crypto-backed second mortgages,” he said.

Crypto mortgage mechanics

The controversy centers on a newly-announced partnership between Better Home and Finance and crypto exchange Coinbase, which recently became the first crypto-backed mortgage product to be accepted by Fannie Mae.

The new offering aims to…