US-based economist Peter Schiff has hit hard at US President Donald Trump for aggressively pursuing a Bitcoin strategy. While Trump is backing Bitcoin in a personal capacity and as president, Schiff theorizes that the US dollar will be the biggest casualty.
Bitcoin Is Harmful To Our Country, Says Peter Schiff
Barely a day after Donald Trump hailed Bitcoin’s impact on the US economy, Peter Schiff has criticized the president’s stance. The economist revealed via an X post that Bitcoin is hurting the US economy by piling significant pressure on the dollar.
Peter Schiff notes that the sale of dollars to buy Bitcoin poses grave dangers to the broader economy, veering from Trump’s position. For the economist, a conversion of USD to Bitcoin will reduce demand for the dollar, potentially affecting its global standing.
Previously, Donald Trump disclosed that Bitcoin is amazing and takes pressure off the dollar, citing jobs and a strong price performance compared to the stock market.
“But selling dollars to buy Bitcoin puts added pressure on the dollar,” said Schiff. “Also wasting resources on Bitcoin is harmful to our country.”
While the federal government has no plans to sell dollars, it intends to fund its Strategic Bitcoin Reserve via criminal and civil forfeiture. However, a raft of states are mirroring the Federal Government to set up their own reserves, empowering them to purchase and hold Bitcoin through capital allocations.
In his personal capacity, Trump Media has raised $2.3B for its Bitcoin treasury operations via a private placement. Peter Schiff may be arguing that the conversion of US dollars raised from stock and convertible notes to Bitcoin is an economic risk.
Promoting The Family Business With Cryptocurrencies
Peter Schiff has also denounced Donald Trump’s affinity for Bitcoin, tagging it as a mere ploy to attract donors. He suggests that Trump is backing the asset to garner the support of wealthy cryptocurrency-based donors.
In May, Donald Trump hosted the top holders of the TRUMP meme coin to a White House dinner, sparking widespread outrage from critics like Peter Schiff. Attendees splurged nearly $150 million to secure their seats at the table with critics accusing Trump of raking in over $1 billion in gains from the family’s crypto business.
Recently, Donald Trump’s World Liberty Financial (WLFI) secured a $100M investment from Aqua 1 to power DeFi expansion. Donald Trump Jr disclosed that neccessity forced the family to embrace the flagship cryptocurrency rather than conveniece, citing debanking by traditional financial institutions.
