On Thursday, Reuters disclosed that Donald Trump’s transition team is weighing the formation of a crypto council for the United States, igniting a wave of enthusiasm among industry insiders eager to claim a seat at the table. The report also revisited the often-debated idea of a strategic bitcoin (BTC) reserve, a concept that has been gaining traction in crypto circles since early this year.
Peter Schiff is not a fan of the U.S. starting a bitcoin reserve and expressed his criticism over the idea.
Republican Senator Cynthia Lummis had previously put forward a bill advocating for a U.S. strategic BTC reserve, and many are now urging Trump to give the proposal serious consideration. According to Polymarket bettors, as of Nov. 21 at 2 p.m. Eastern Time, there’s a 46% chance that Trump could take steps toward creating such a reserve. Meanwhile, as the chatter spread, BTC skeptic Peter Schiff didn’t hold back on social media, expressing his disdain and sharing his take on the matter.
Schiff stated:
If the U.S. creates a bitcoin reserve, wasting billions of taxpayer dollars buying bitcoin, it will also misdirect capital away from the very industries the U.S. must develop in order to grow the economy, reduce its trade imbalance, shrink fiscal deficits, and lower inflation.
As expected, Schiff’s comments stirred the pot, but plenty of people pushed back against his views. “Adding bitcoin to the balance sheet will strengthen the U.S. dollar and allow interest rates to go down without having to be stated or yield curve controlled down,” one person said on X. Someone else chimed in with a witty remark, saying, “But the thesis is to sell gold and buy bitcoin. No taxpayer dollars.” Another detractor of Schiff’s comment responded:
Get in loser we’re paying off $35T in national debt with a small fraction of a bitcoin.
As bitcoin inches closer to the $100,000 milestone, Schiff’s skepticism seems increasingly out of touch with the digital currency’s growing role in global finance. With rising institutional interest and mounting calls for strategic reserves, BTC’s momentum suggests it could emerge as a powerful economic tool. Critics argue Schiff’s dismissal of bitcoin risks ignoring its transformative potential.
While Schiff warns of misallocated resources, others see bitcoin as an opportunity to revolutionize economic policy and debt management. As conversations around BTC reserves gain traction, the divide between skeptics and proponents widens. However, with bitcoin’s resilience and adoption accelerating, the argument that it could bolster fiscal stability seems more compelling than ever.
