Bitcoin Reserve or USA Coin? Peter Schiff’s Plan to Solve US Debt Stirs Heated Debate

Peter Schiff introduces a controversial USA Coin proposal as a counter to the Bitcoin Reserve, fueling debate over how best to address the growing US debt. With a 21-million supply cap and blockchain innovations, his idea offers a bold alternative to cryptocurrency-backed reserves.

Schiff Suggests USA Coin as a Bitcoin Reserve Alternative

Replacing the Strategic Bitcoin Reserve with a "USA Coin" will save the United States a ton of money, according to an X post by Peter Schiff. He did mention that, similar to Bitcoin, the supply of the US coin can be limited to 21 million.

He went on to say that for the coin to be practical for usage in payments, it needs to be integrated with an improved blockchain. The famous economist has spoken out against the concept of a Strategic Bitcoin Reserve multiple times; he is also a Bitcoin skeptic.

Schiff recently said that selling the US Bitcoin assets would be Biden's finest move before he leaves office. He claims that would put an end to the "nonsense" around the idea of a Bitcoin Reserve.

Senator Lummis Proposes Bitcoin Reserve for National Debt

It appears that his most recent remarks are an attempt to mock the Bitcoin faithful once more. Even though Peter Schiff remains skeptical, the establishment of a US Bitcoin Reserve appears to be making progress.

Additionally, Senator Cynthia Lummis, who spearheaded the Bitcoin Act of 2024, has put forward a proposal for the BTC Reserve to address the nation's staggering $36 trillion debt. The possibility that the reserve may pay off 36% of the national debt by 2050 was also discussed by Matthew Sigel of VanEck.

Critics Warn Bitcoin Reserve May Undermine US Dollar

A Strategic Bitcoin Reserve appears to have Peter Schiff's and Nic Carter of Castle Island Ventures's opponents. The Dollar would be undermined, not supported, by a Bitcoin Reserve, as Carter explained.

The US Dollar, he said, is the world's reserve currency. Thus, the United States may be signaling a lack of faith in the dollar-based system if it acquires Bitcoin and gives it monetary value, Coingape shares.

Bitcoin Reserve Gains Traction Despite Objections

Regardless of the concerns voiced by Nic Carter and Peter Schiff, it appears that the spotlight is on Bitcoin's potential to bolster the US economy. A Strategic Bitcoin Reserve as a means to offset US debt is a practical option, according to CryptoQuant CEO Ki Young Ju.