Forget about Bitcoin or its much-hyped strategic reserve as a way to address growing debt and inflation, well at least according to Peter Schiff.
Schiff, a long-time critic of Bitcoin, has once again stirred controversy by suggesting that the US government should focus its resources on a “USA Coin” or a government-backed digital asset.
Like Bitcoin, the proposed USA Coin can cap its supply at 21 million. Running on an upgraded blockchain, this digital asset can have multiple use cases, benefiting everyone.
Schiff Throws Weight Around Digital Assets, But Not Bitcoin
Schiff, an economist and global strategist, has long criticized the alpha coin. The outspoken economist has consistently shared his warnings about Bitcoin. In a post in early December, Schiff warned that the world’s top digital asset may destroy the US dollar. He argued that crypto could potentially be the reason for the dollar’s demise since the US government may end up printing trillions of greenback just to buy digital assets, fueling more debt.
Instead of creating a #Bitcoin strategic reserve, the U.S. could save a lot of money by creating #USAcoin. Just like Bitcoin, the supply can be capped at 21 million, but with an upgraded blockchain to make USAcoin actually viable for use in payments. This way we can all get rich.
— Peter Schiff (@PeterSchiff) December 21, 2024
Schiff made a major turnaround this week by promoting a digital asset, but it’s not Bitcoin. In a Twitter/X post last December 21st, he shared that the US can be in a better position by developing a “USA Coin.” The coin’s supply will be capped at 21 million and operated on an upgraded blockchain to make it more useful. Schiff’s latest pronouncements reflect the growing popularity of cryptocurrencies, even from critics.
Bitcoin detractor, Peter Schiff. Image: Fox Business
USA Coin A Better Option For US, Schiff Says
According to Schiff, Bitcoin often benefits a few and can destroy the US dollar. But with the proposed USA Coin, can end up making everyone rich. Schiff’s latest post reflects his changing position on digital assets while still criticizing the top digital asset’s decentralization.
BTC market cap currently at $1.92 trillion. Chart: TradingView.com
Instead of a decentralized arrangement, the US government will develop and maintain the proposed coins. Schiff favors centralized authority and control of digital assets over the vaunted decentralization of Bitcoin and other altcoins. In short, his recent comments ultimately point to his main beef with the crypto: it’s not controlled by a single authority or a few persons and not about technology.
Image: CFA Institute
Preference For Centralization Over Decentralization
Many Bitcoin critics attack the crypto project for its highly decentralized arrangement. These commentators seem to prefer centralization when proposing a government-backed digital asset. Schiff’s latest Twitter/X post also suggests that he can support crypto projects only if he’s part of the process.
Schiff’s comments and changing position on cryptocurrencies reflect the growing debate on this sector. For many BTC supporters, decentralization is the way to go. However, for Schiff and other commentators, government intervention is required to ensure stability and trust.
Featured image from TokenPost, chart from TradingView
