Renowned Bitcoin critic and economist Peter Schiff has sparked new controversy by urging President Joe Biden to sell all the Bitcoin currently held by the U.S. government.
Schiff, a long-time opponent of cryptocurrencies, tweeted that selling these assets would help reduce the 2024 budget deficit. He also said it would eliminate speculation about the U.S. establishing a "strategic Bitcoin reserve."
Peter Schiff Wants to Scrap Plans for Strategic Bitcoin Reserve
Just a day after calling Bitcoin "public enemy number one," gold proponent Peter Schiff has leveled another criticism at the pioneering cryptocurrency.
"The only good thing Biden could do before leaving office is to sell all the Bitcoin the U.S. government currently holds. This would not only reduce the 2024 budget deficit, but also put an end to all the nonsense about creating a harmful 'strategic' Bitcoin reserve." - Peter Schiff, Economist
Schiff's remarks immediately drew backlash from cryptocurrency supporters. Popular X (formerly Twitter) user BitBuyer313 rebutted him.
"Then we'll just have to buy it at a higher price. Trump already spilled the beans. Now our competitors are setting up their own strategic Bitcoin reserves. Game theory has already won, Peter. Gold's market value has no chance against Bitcoin." - BitBuyer313, X user
Schiff claimed that former President Donald Trump never promised to buy Bitcoin. Instead, he only said the government would hold what it currently has. Schiff also argued that if Biden sells this reserve now, Trump won't need to fulfill that promise if he regains the presidency.
In retrospect, Trump had announced plans during his campaign to create a "strategic national Bitcoin reserve" using Bitcoin seized by the government.
"The policy of my administration will be to hold 100% of the Bitcoin currently owned or hereafter acquired by the U.S. government. This will be the core of a strategic national Bitcoin reserve." - Donald Trump, Former U.S. President
Schiff criticized Trump's announcement as a tactical mistake, arguing he should have kept such intentions secret until taking office to prevent the current administration from acting first.
Meanwhile, the U.S. government's Bitcoin holdings have been an intriguing topic. Recent blockchain analysis revealed the movement of billions of dollars in Bitcoin, including $243 million linked to Mt. Gox, after Bitcoin surpassed $100,000.
Additionally, finance lawyer Scott Johnson recently suggested that the U.S. Marshals Service (USMS) may already be selling Bitcoin seized in high-profile cases like Silk Road. A June service contract between USMS and Coinbase has strengthened this theory.
Strategic BTC Reserves a Global Trend
As Schiff continues his campaign against Bitcoin reserves, other countries are considering adopting them. According to BeInCrypto, Russia is already exploring creating a strategic Bitcoin reserve as part of its de-dollarization efforts.
The mayor of Vancouver has proposed a municipal Bitcoin reserve to protect the city from financial instability. Similarly, Polish political leader Sławomir Mentzen promised to establish a national Bitcoin reserve if elected.
These developments reflect growing recognition of Bitcoin's role in global finance. Supporters argue that Bitcoin reserves can provide financial independence and protection against inflation, particularly for economies reliant on the U.S. dollar.
The debate over the U.S. government's Bitcoin holdings is a microcosm of a larger ideological divide. Schiff champions traditional fiscal policies and gold, while Bitcoin advocates see it as an essential asset for the digital age.
As Trump's return to office looms, the fate of the Bitcoin held by the U.S. government is likely to be a flashpoint, reflecting the broader debate over the role of cryptocurrencies in national strategies.
