The Bitcoin Reserve continues to be a topic of debate in the US. Peter Schiff suggests that the US create a US cryptocurrency instead of adopting the Strategic Bitcoin Reserve. Schiff states that the supply of cryptocurrency should be limited to 21 million like BTC. Nic Carter argues that a BTC Reserve could undermine the dollar.
Alternative to the strategic Bitcoin reserve from the gold bug!
Gold bug Peter Schiff suggests that the US create a ‘USA Coin’ instead of the Strategic Bitcoin Reserve. He states that this would save a lot of money. Interestingly, just like Bitcoin, he recommends that the supply of the US cryptocurrency be limited to 21 million. He adds that the cryptocurrency should work with an upgraded Blockchain for use in payments.
As you follow from Kriptokoin.com, Schiff has a sceptical approach to Bitcoin. The famous economist has openly expressed his opposition to the idea of a Strategic BTC Reserve on several occasions. Recently, Schiff stated that the best thing Biden could do before leaving office is to sell the US’s BTC assets. According to him, this would end all the ‘nonsense’ about creating a BTC Reserve. His latest comments seem to be his way of mocking BTC loyalists once again.
Is the US sticking to the plan on the Bitcoin Reserve?
However, despite Peter Schiff’s scepticism, the creation of a US BTC Reserve is gaining ground. Moreover, Senator Cynthia Lummis, sponsor of the Bitcoin Act of 2024 bill, has proposed a plan for the BTC Reserve to reduce the $36 trillion national debt. VanEck’s Matthew Sigel also described a scenario in which the reserve could offset 36% of the national debt by 2050.
A case against the BTC Reserve
Like Peter Schiff, Nic Carter of Castle Island Ventures is against the idea of a Strategic Bitcoin Reserve. Carter argues that a BTC Reserve would weaken the Dollar rather than support it. He emphasises that the US has removed the Dollar as the global reserve currency. Therefore, buying Bitcoin and giving it a monetary role would mean that the US has lost confidence in the current dollar-based system.
But despite objections from the likes of Nic Carter and Peter Schiff, the focus is on how Bitcoin can strengthen the US economy. Ki Young Ju, CEO of CryptoQuant, also agrees that the Strategic Bitcoin Reserve is a logical approach. He even suggests that this will be an instrument to stabilise the US debt.
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