Selling Bitcoin can reduce the budget deficit.

Prominent Bitcoin critic and economist Peter Schiff has sparked a new controversy by urging President Joe Biden to sell all Bitcoin currently held by the US government.

Schiff, a long-time cryptocurrency activist, tweeted that liquidating these assets would help reduce the 2024 budget deficit. He said he would dispel speculation about the US establishing a “strategic bitcoin reserve”.

Peter Schiff wants the strategic bitcoin reserve plans to end

Only one day later Gold bully Peter Schiff takes another jab at Bitcoin, calling it public enemy number one The pioneer crypto.

“One good thing Biden could do before he leaves office is to sell all the Bitcoin currently held by the US government. The money raised would not only reduce the 2024 budget deficit, but also stop all the nonsense about creating a harmful ‘strategic' Bitcoin reserve,” Schiff said.

Schiff's comments drew immediate backlash from cryptocurrency advocates. Posted by X (formerly Twitter), popular user known as BitBuyer313.

“Then we have to buy at a higher price. Trump has already let the cat out of the bag; now our competitors are making plans for their own strategic Bitcoin accumulation. Game theory has already won this, Peter. The market price of gold does not give a chance on Bitcoin,” argued the user.

Schiff responded by saying that former President Donald Trump never promised to buy Bitcoin. Instead, the government just decided to keep what it already has. Schiff also argued that Biden selling these reserves now would prevent Trump from fulfilling such a promise if he returns to office.

In hindsight, during the campaign, Trump announced a plan to create a “strategic national Bitcoin reserve” using government-owned BTC.

“It will be my administration's policy to keep 100% of the bitcoins that the US government currently holds or acquires. This will serve as an integral part of the Strategic National Bitcoin Stockpile,” Trump said.

Schiff criticized Trump's announcement as a tactical error. They argued that they should have been kept secret until Trump took office to prevent the current administration from taking action.

Elsewhere, the US government's bitcoin holdings were the subject of intrigue. A recent blockchain analysis showed billions in movement, including $2.43 billion linked to Mount Gox, after Bitcoin crossed $100,000 in value.

Adding to the speculation, financial attorney Scott Johnson recently suggested that the US Marshals Service (USMS) may sell bitcoins seized in cases related to Silk Road. A June services agreement between USMS and Coinbase reinforced theories about such sales.

Global trends in strategic BTC accumulation

While Schiff continues to campaign against the idea of ​​a bitcoin reserve, other countries are considering adopting it. As BeenCrypto reports, Russia is already being tipped to create a strategic bitcoin reserve as part of its dollarization efforts.

Vancouver's mayor has proposed a municipal bitcoin reserve to protect the city from financial instability. Similarly, Polish political leader Sławomir Mentzen has promised to establish a national Bitcoin reserve if elected.

These developments reflect the growing recognition of Bitcoin's role in global finance. Advocates argue that Bitcoin reserves can provide financial freedom and protection against inflation, a concern especially for economies dependent on the US dollar.

The debate over the US government's holdings of bitcoin is a microcosm of a larger ideological divide. While Schiff championed traditional fiscal policies and gold, Bitcoin supporters see it as an essential asset for the digital age.

As Trump's inauguration approaches, the fate of Bitcoin held by the U.S. government could become a contentious issue, reflecting broader debates about the role of cryptocurrency in national strategy.