Bitcoin Reserve Bill Faces Headwinds: Peter Schiff Warns of Economic Consequences

Peter Schiff, the American economist and vocal Bitcoin critic, has raised concerns over the proposed Bitcoin Reserve bill, stressing its lack of backing in Congress.

Schiff took to X to express his views on the proposed legislation for a national Bitcoin reserve. He said that while the proposed bill has garnered significant support from the crypto community online, it is “not so much on Capitol Hill.”

The bill to establish a "strategic" #Bitcoin reserve gets lots of attention among the #HODL crowd on X, but not so much on Capitol Hill. The bill has no co-sponsors. Other than @CynthiaMLummis herself, the only other member of Congress who has expressed support is @RoKhanna.
— Peter Schiff (@PeterSchiff) December 3, 2024

Known as the BITCOIN Act, the bill has not gained any co-sponsors besides its author, Senator Cynthia Lummis. The only other member of Congress to express support is Representative Ro Khanna.

Lummis’ Bitcoin Reserve bill proposes that the Treasury Department acquire one million Bitcoin over five years, to be held for at least 20 years unless used to pay down federal debt.

In June, President-elect Donald Trump voiced strong support for establishing a strategic national Bitcoin reserve during his appearance at the Bitcoin Conference in Nashville. His endorsement of a federal Bitcoin stockpile has been credited with contributing to the surge in the cryptocurrency’s value, which currently stands at over $96,000.

Schiff’s Previous Skepticism

Earlier this month, Schiff argued that in a scenario where the government purchases one million Bitcoin, the resulting price surge could prompt long-term holders to sell their assets.

He further said that such a scenario would lead to a market crash and compel the U.S. government to print additional dollars to purchase more Bitcoin and stabilize its price. However, he believed that this strategy would ultimately diminish the value of the government’s Bitcoin holdings.

“In the end, Bitcoin would have succeeded in destroying the dollar,” Schiff wrote. He added that this possible scenario could be a key reason why he believes the national Bitcoin reserve will not be established.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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