Peter Schiff Slams U.S. Bitcoin Reserve as Political Favor
- Schiff claims the U.S. Bitcoin reserve plan is a political reward to wealthy crypto backers.
- Schiff says no smart world leaders will buy BTC, rejecting it as a legitimate strategic asset.
- Trump’s executive order has reignited debate as countries explore national Bitcoin strategies.
Gold advocate Peter Schiff has launched a new attack on Bitcoin, calling the U.S. strategic Bitcoin reserve plan a political favor. In a post on X, Schiff said the proposal is not strategic but rather a payback to Bitcoin whales. He accused President Donald Trump of pushing the reserve idea to reward donors from the crypto industry.
Schiff claimed that neither the United States nor any other major country would ever buy Bitcoin. He argued that world leaders “are not that dumb.” Schiff has long criticized Bitcoin, positioning gold as the superior safe-haven asset due to its historic value and physical properties.
His comments were in response to a video posted by Anthony Pompliano on X, which focused on tariffs, inflation, and interest rates. Pompliano noted that Binance is helping countries establish their own Bitcoin reserves. He also mentioned that once a large country begins buying Bitcoin, others will follow to stay competitive.
Pompliano described this dynamic as game theory in action. He emphasized that if the United States embraces Bitcoin, other global powers may be forced to do the same. His remarks gained significance in light of Trump signing an executive order in March to establish a U.S. Strategic Bitcoin Reserve. Following Trump’s announcement, multiple reports emerged indicating that several countries are also considering Bitcoin accumulation as a strategic move.
Trump’s plan follows moves by smaller nations like El Salvador and Bhutan, which have already purchased Bitcoin. More recently, Panama City voted to accept crypto for tax and permit payments, showing increased government-level interest in digital assets.
Still, Schiff remains unconvinced. He believes digital currencies lack the inherent qualities needed to qualify as national reserves. According to him, Bitcoin’s price volatility and lack of physical backing make it unsuitable for sovereign wealth strategies.
Related: Gold Surges Past $3,300 as Bitcoin Drops, Schiff Sparks Debate
Despite his criticism, the concept of a Bitcoin reserve continues to gain traction globally. Countries are exploring mining, payment integration, and direct purchases as part of broader digital strategies. As more governments evaluate digital asset policies, the debate over Bitcoin’s legitimacy in national finance continues to intensify.
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