Renowned American economist and Bitcoin critic, Peter Schiff, has recently voiced his concerns over President Donald Trump’s decision to establish a Bitcoin Strategic Reserve. The decision, which has sparked vigorous discussions among crypto enthusiasts and the traditional finance sector, was announced via an executive order on March 6. Schiff suggests that this move is a result of donor influence and conflicting interests within Trump’s administration.
President Trump’s executive order initiates the formation of a reserve holding nearly 200,000 BTC, confiscated by the U.S. law enforcement over the years. None of these bitcoins will be sold; they will be stored as a “digital Fort Knox,” ensuring their value preservation. Moreover, the order also includes plans for a digital asset stockpile that will hold altcoins such as Ethereum, Solana, Cardano, and XRP.
However, Schiff criticizes this decision, stating that it is a product of political and financial agenda. He alleges that Trump’s decision was significantly influenced by his cabinet members and donors, who majorly consist of the crypto community, contributing over $22 million towards his re-election campaign. He went on to state, “Trump just signed a bogus executive order to create a Strategic Bitcoin Reserve using the Bitcoin the government already owns.”
Schiff extended his criticism beyond the creation of the reserve. He opposed the notion of selling gold to fund BTC purchases, stating that such a sale would still constitute a cost. However, some proponents argue that such a move involves opportunity costs rather than direct taxpayer expenses.
Notwithstanding Schiff’s objections, many view the national Bitcoin reserve as a landmark in the cryptocurrency’s adoption. Joe Burnett, Head of Market Research at Unchained, believes that Trump’s order heralds the start of a new era of Bitcoin integration.
Burnett anticipates the creation of new financial products centered around Bitcoin and increased institutional exposure to BTC to emerge from this move. He asserted, “With the establishment of a Bitcoin Strategic Reserve, the U.S. has taken its first real step toward integrating Bitcoin into the fabric of global finance.”
