- Peter Schiff suggests that selling the U.S. government’s Bitcoin holdings could help reduce the 2024 budget deficit.
- He opposes the creation of a Strategic Bitcoin Reserve, calling it unnecessary and potentially harmful.
- Schiff believes selling the Bitcoin now would align with President-elect Trump’s commitment not to sell existing reserves.
Economist Peter Schiff has called on President Joe Biden to sell all Bitcoin held by the U.S. government, arguing that such a move would yield financial and policy benefits. Schiff outlined his reasoning in a recent social media post, suggesting that the sale could help address the country’s budget deficit while preventing future administrations from establishing a controversial Strategic Bitcoin Reserve.
Schiff, a long-time Bitcoin critic, proposed that selling the U.S. government’s Bitcoin holdings would provide much-needed revenue to reduce the looming 2024 budget deficit. Data from blockchain analytics firm Arkham shows that the U.S. government holds approximately 198,109 BTC, valued at over $19 billion.
Beyond addressing financial concerns, Schiff believes the sale would prevent the creation of a Strategic Bitcoin Reserve, an initiative supported by some lawmakers and set to be considered under a new administration. Schiff described the idea of such a reserve as “nonsense” and potentially harmful, asserting that selling the Bitcoin now would render the concept useless.
The notion of a Strategic Bitcoin Reserve stems from Senator Cynthia Lummis’ proposed “Bitcoin Act of 2024.” The bill outlines a plan for the U.S. government to acquire up to one million BTC over the next four years using funds from Federal Reserve remittances.
Schiff also tied his recommendation to political considerations, particularly regarding the incoming administration. Moreover, President-elect Donald Trump stated that his government would not sell the Bitcoin currently held by the U.S. government. However, Trump has yet to promise to increase these reserves.
Schiff’s remarks follow his earlier warnings about Bitcoin’s potential risks to the U.S. economy. He argued that adopting Bitcoin on a larger scale could lead to excessive money printing to acquire the asset, potentially inflating a bubble and depleting national wealth.
While Schiff’s views align with his broader skepticism of cryptocurrency, the decision to sell or hold the U.S. government’s Bitcoin reserves in the coming months will likely depend on broader legislative and economic considerations.
