According to Reuters, the upcoming cryptocurrency advisory council of President-elect Donald Trump is reportedly considering establishing a strategic bitcoin reserve fund. This idea has drawn reactions from economist and gold enthusiast Peter Schiff, who shared his views on the BTC reserve fund concept.
Trump's transition is reportedly aimed at Bitcoin Reserve, Schiff rebuts financial mistake
On Thursday, Reuters revealed that Donald Trump's transition team is considering establishing a cryptocurrency council for the United States, sparking excitement among industry insiders eager to secure a seat at the table. The report also revisits the often-debated idea of a strategic bitcoin (BTC) reserve fund, a concept that has been gaining attention in the cryptocurrency space since the beginning of the year.
Republican Senator Cynthia Lummis previously introduced a bill supporting a strategic BTC reserve fund for the United States, and many are now urging Trump to seriously consider this proposal. According to Polymarket bettors, as of November 21 at 2 PM Eastern time, there is a 46% chance Trump may take steps to create such a reserve fund. Meanwhile, as the discussions spread, BTC skeptic Peter Schiff has not held back on social media, expressing disdain and sharing his views on the matter.
Schiff declares:
If the United States creates a bitcoin reserve fund, wasting billions of taxpayer dollars to buy bitcoin, it will also divert capital away from industries that the US needs to develop to grow the economy, reduce trade imbalances, shrink budget deficits, and lower inflation.
As predicted, Schiff's comments stirred things up, but many people opposed his views. 'Adding bitcoin to the balance sheet will strengthen the US dollar and allow interest rates to decrease without having to announce or control the yield curve down,' one person said on X. Another joked, 'But the argument is to sell gold and buy bitcoin. No taxpayer money.' Another person who opposed Schiff's comments replied:
Come on losers, we will pay off $35 trillion in national debt with just a fraction of bitcoin.
As bitcoin approaches the $100,000 mark, Schiff's skepticism seems increasingly out of step with the growing role of digital currency in global finance. With increasing interest from institutions and rising demands for strategic reserves, BTC's momentum suggests it could emerge as a powerful economic tool. Critics argue that Schiff's dismissal of bitcoin risks overlooking its transformative potential.
While Schiff warns about misallocating resources, others see bitcoin as an opportunity to revolutionize economic policy and debt management. As discussions around the BTC reserve attract attention, the divide between skeptics and supporters continues to grow. However, with increasing resilience and adoption of bitcoin, the argument that it could strengthen financial stability seems more appealing than ever.
