Renowned Bitcoin critic and economist Peter Schiff has sparked fresh controversy by urging President Joe Biden to sell all BTC reserves held by the United States (US) government.
Schiff, a longtime crypto detractor, tweeted that liquidating these assets would help reduce the 2024 budget deficit. He claims it would also eliminate any speculation about the establishment of a U.S. “Strategic Bitcoin Reserve.”
Peter Schiff wants Bitcoin strategic reserve plans scrapped
In fact, a day after calling Bitcoin public enemy number one, gold-digger Peter Schiff has taken another swipe at the crypto pioneer.
The only good thing Biden can do before he leaves office is to sell all the Bitcoin currently held by the US government. Not only would the money raised reduce the 2024 budget deficit, but it would also put an end to all the nonsense about creating a harmful Bitcoin ‘Strategic Reserve’, Schiff claimed.
Schiff’s statements were immediately challenged by pro-crypto advocates. A popular user on X (formerly Twitter) identified as BitBuyer313 hit back.
Then we would have to buy at a higher price. Trump has already revealed the secret; now our competitors are drawing up plans for their own strategic Bitcoin reserves. Game theory has already won this, Peter. Gold’s market value doesn’t stand a chance against Bitcoin, the user challenged.
Schiff responded by stating that former President Donald Trump never promised to buy Bitcoin. Instead, he only promised to hold on to what the government currently holds. Schiff also argued that Biden selling those reserves now would prevent Trump from having to fulfill such a promise if he returns to office.
In retrospect, during his campaign, Trump announced plans to create a “strategic national stockpile of Bitcoin,” using BTC seized by the government.
“It will be the policy of my administration to hold 100% of all Bitcoin that the U.S. government currently owns or acquires in the future. This will serve as the core of the strategic national stockpile of Bitcoin,” Trump said.
Schiff criticized Trump's announcement, calling it a tactical error. He argued that Trump should have kept such intentions secret until he took office to prevent the current administration from acting first.
Elsewhere, the US government’s Bitcoin holdings have been a topic of interest. Recent blockchain analysis has revealed, for example, billions in Bitcoin movements, including $2.43 billion tied to Mt. Gox after Bitcoin surpassed $100,000.
Adding to the speculation, financial lawyer Scott Johnson recently suggested that the U.S. Marshals Service (USMS) may already be selling Bitcoin seized in high-profile cases, such as those involving Silk Road. A June service agreement between the USMS and Coinbase bolstered theories about such sales.
Global Trends in BTC Strategic Reserves
While Schiff continues to campaign against the idea of a Bitcoin reserve, other nations are considering adopting it. As reported by BeInCrypto, Russia is already deliberating on creating a strategic Bitcoin reserve as part of its de-dollarization efforts.
Vancouver’s mayor has proposed a municipal Bitcoin reserve to protect the city from financial instability. Similarly, Poland’s political leader Sławomir Mentzen has vowed to establish a national Bitcoin reserve if elected.
These developments reflect a growing recognition of Bitcoin’s role in global finance. Advocates argue that Bitcoin reserves could provide financial independence and protection against inflation, a concern particularly relevant to economies dependent on the U.S. dollar.
The debate over the US government’s Bitcoin holdings is a microcosm 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.
As Trump’s inauguration approaches, the fate of Bitcoin held by the US government is likely to become a contentious issue, reflecting broader debates about the role of crypto in national strategy.
The article Peter Schiff Urges Biden to Sell US Bitcoin Amid Reserves Debate appeared first on BeInCrypto.
