Peter Schiff calls for Biden to sell US government Bitcoin holdings

Economist Peter Schiff has reignited debate over the U.S. government's Bitcoin (CRYPTO:BTC) holdings by urging President Joe Biden to sell all Bitcoin currently held by the government. 

In a recent tweet, Schiff argued that liquidating these assets would help reduce the 2024 budget deficit and eliminate speculation surrounding the establishment of a U.S. “Strategic Bitcoin Reserve.” 

Schiff, a long-time critic of cryptocurrency, stated, “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.”

His comments were met with resistance from cryptocurrency advocates.

“Then we’d just have to buy in at a higher price. Trump already let the cat out of the bag; now our competitors are working out plans for their own strategic Bitcoin reserves,” a user on X (formerly Twitter) known as BitBuyer313 countered.

Schiff responded by clarifying that former President Donald Trump did not commit to purchasing Bitcoin but rather to retaining existing government holdings.

He suggested that selling now would prevent Trump from having to fulfill any future promises regarding Bitcoin reserves.

Trump had previously announced plans for a “strategic national Bitcoin stockpile,” stating, “It will be the policy of my administration to keep 100% of all the Bitcoin the US government currently holds or acquires into the future.”

Schiff criticized this approach as a tactical mistake, arguing that such intentions should have been kept private.

The U.S. government's Bitcoin holdings have attracted attention recently, particularly after blockchain analysis revealed significant movements of Bitcoin linked to high-profile cases.

While Schiff remains opposed to the idea of a U.S. Bitcoin reserve, other countries are exploring similar initiatives.

Russia is considering a strategic Bitcoin reserve as part of its de-dollarization efforts, and proposals for municipal and national reserves are emerging in various regions.

At the time of reporting, the Bitcoin price was $97,371.02.