Famous Bitcoin critic and economist Peter Schiff has sparked new controversy by calling on President Joe Biden to sell all Bitcoin currently held by the US government.
Schiff, a long-time critic of cryptocurrencies, wrote online that liquidating these assets would help reduce the 2024 budget deficit. He also said that this would dispel any speculation about creating a “ “Bitcoin Strategic Reserve” of the United States.
Peter Schiff Wants to Shut Down Strategic Bitcoin Reserve Plan
Just one day after calling Bitcoin public enemy number one, gold advocate Peter Schiff has taken aim at the pioneering cryptocurrency.
“The best thing Biden can do before leaving office is to sell all the Bitcoin currently held by the US government. The proceeds will not only reduce the 2024 budget deficit, but also dispel any nonsense about creating a harmful Bitcoin ‘Strategic Reserve’,” Schiff stated.
Schiff’s comments immediately met opposition from cryptocurrency advocates. A famous user on X (formerly Twitter), who goes by the name BitBuyer313, argued.
“Then we just need to buy at a higher price. Trump has already revealed the secret, now our opponents are looking to create their own strategic Bitcoin reserves. Game theory wins, Peter. The market value of gold has no chance of standing against Bitcoin,” said this user challenge.
Schiff feedback by asserting that former President Donald Trump never committed to buying Bitcoin. Instead, he just pledged to keep what the government already has. Schiff also argued that Biden selling these reserves now would prevent Trump from having to fulfill that promise if he is re-elected.
In terms of the past, during his campaign, Trump announced plans to create a “strategic national Bitcoin warehouse,” using BTC confiscated by the government.
“It will be the policy of my administration to hold 100% of all Bitcoin that the United States government currently holds or will have in the future. This will be the nucleus of a strategic national Bitcoin vault,” Trump speak.
Schiff criticize Trump’s announcement, calling it a strategic mistake. He argued that Trump should keep such intentions under wraps until he comes to power to prevent the current administration from acting first.
Elsewhere, the US government’s Bitcoin assets have become a hot topic. Recent blockchain analysis shows the movement of billions of Bitcoins, including $2.43 billion linked to Mt. Gox after Bitcoin surpassed the price of 100K USD.
Accordingly, financial lawyer Scott Johnsson recently suggested that the United States Marshals Service (USMS) may have begun selling Bitcoin obtained in high-profile cases, such as those related to Silk Road . A June services agreement between USMS and Coinbase bolstered theories about these transactions.
Global Trends in Strategic BTC Reserves
While Schiff continues to oppose the idea of Bitcoin reserves, other countries are considering adoption. As TinTucBitcoin reported, Russia is considering creating a strategic Bitcoin reserve as part of its de-dollarization efforts.
Vancouver’s mayor has proposed a city-level Bitcoin reserve to protect against financial instability. Similarly, Poland’s political leader, Sławomir Mentzen, has promised to establish a national Bitcoin reserve if elected.
These developments reflect the growing recognition of Bitcoin’s role in global finance. Proponents say Bitcoin reserves can provide financial independence and protect against inflation, a concern especially relevant to economies that rely on the US dollar.
The debate over the US government’s Bitcoin assets is a smaller version of a larger ideological divide. While Schiff favors traditional fiscal policies and gold, Bitcoin advocates see it as an essential asset for the digital age.
With Trump’s inauguration approaching, the fate of the US government’s Bitcoin holdings could become a contentious issue, reflecting broader debates about the role of cryptocurrencies in national strategy. family.