Peter Schiff Urges Biden to Sell Bitcoin Reserves to Reduce Deficit

• Peter Schiff suggests selling US Bitcoin reserves
• Debate on the creation of a Bitcoin Strategic Reserve in the US
• Other Countries Consider Adopting National Bitcoin Reserves

Economist and financial commentator Peter Schiff, known for his critical stance on Bitcoin, has suggested that President Joe Biden sell all of the US government’s Bitcoin reserves before leaving office. Schiff argues that such a move could help reduce the 2024 budget deficit and end discussions about creating a “harmful” Strategic Bitcoin Reserve.

The one good thing #Biden can do before leaving office is sell all the # Bitcoin currently held by the US Govt. Not only would the money raised reduce the 2024 budget deficit, but it would put an end to all the nonsense about creating a harmful "Strategic" Bitcoin Reserve.

- Peter Schiff (@PeterSchiff) December 9, 2024

In a post on X Platform, Schiff stated: “The only good thing Biden can do before he leaves office is to sell all the Bitcoin currently held by the US government. Not only would the money raised reduce the 2024 budget deficit, but it would also put an end to all the nonsense about creating a harmful Bitcoin ‘Strategic Reserve’.”

Schiff’s proposal comes amid ongoing debate over the creation of a national Bitcoin reserve, especially after President-elect Donald Trump expressed support for the idea during the Bitcoin Conference in Nashville. Trump stated that his administration would hold 100% of the Bitcoin that the U.S. government currently owns or acquires in the future, using it as the core of a strategic national Bitcoin stockpile.

However, Schiff disagrees with this approach and believes that selling off current Bitcoin reserves before Trump takes office would prevent the new president from having to fulfill this promise. In response to a user on X who suggested that the new administration could buy back Bitcoin at higher prices, Schiff responded: “He [Trump] never promised to buy any Bitcoin, just not to sell the Bitcoin the government already holds. But by the time he takes office, assuming he wins, the government’s Bitcoin will have already been sold. So he doesn’t have to break his promise.”

The idea of ​​a Bitcoin Strategic Reserve has been gaining attention not only in the US but also in other countries. Recently, federal deputy Eros Biondini (PL-MG) introduced a bill proposing that Brazil create a Sovereign Strategic Reserve of Bitcoins (RESBit), representing 5% of the country’s international reserves. The proposal aims to diversify the assets of the National Treasury and protect the reserves against exchange rate fluctuations and geopolitical risks.

Additionally, in Poland, presidential candidate Sławomir Mentzen has advocated the creation of a strategic Bitcoin reserve, promising to transform the country into a cryptocurrency haven with friendly regulations and low taxes.

These moves reflect a growing recognition of Bitcoin’s role in global finance. Advocates argue that Bitcoin reserves could provide financial independence and protection against inflation, a concern particularly relevant to economies dependent on the U.S. dollar.

However, critics like Peter Schiff warn of the risks associated with Bitcoin’s volatility and its potential impact on economic stability. Schiff argues that creating a national Bitcoin reserve could lead to an economic crisis, noting that the government would have to print more money to buy BTC after adopting the cryptocurrency, which could result in a bigger bubble and a waste of national wealth.

At the time of publication, the price of Bitcoin was quoted at US$95.180,17 with a drop of 3.2% in the last 24 hours.

As the debate over whether to include Bitcoin in national reserves continues, countries around the world are weighing the potential benefits and risks of this strategy. The decision to adopt Bitcoin as a reserve asset or not could have significant implications for a nation’s economic stability and geopolitical position.