- Schiff warns that rising Bitcoin purchases may reduce global demand for the U.S. dollar, impacting its economic strength.
- Several states are following federal plans to build Bitcoin reserves, using civil and criminal seizure assets for funding.
- Trump’s family business raised $2.3 billion for Bitcoin investment, drawing criticism over potential political and economic conflicts.
Economist Peter Schiff has voiced sharp criticism of President Donald Trump’s increasing support for Bitcoin, stating it could harm the U.S. dollar. His statement comes shortly after Trump praised the cryptocurrency’s role in boosting the economy and creating new jobs.
According to Schiff, buying Bitcoin by selling U.S. dollars may weaken the dollar’s global position. He emphasized that this trend could reduce the demand for the currency, which he views as a threat to the broader economy. Trump, however, recently stated that Bitcoin “takes pressure off the dollar,” pointing to its rising value and growing influence in financial markets.
Strategic Bitcoin Reserves Grow
The U.S. federal government is not directly selling dollars to buy Bitcoin. Instead, it plans to grow a Strategic Bitcoin Reserve using funds acquired through civil and criminal forfeiture. Several state governments are reportedly adopting similar strategies, using public funds to establish crypto reserves for financial autonomy.
On the private front, Trump Media has raised $2.3 billion for its Bitcoin treasury through a private placement. Schiff argues that using such capital to acquire Bitcoin introduces further economic exposure, especially if those funds were initially held in dollars or tied to convertible notes.
Accusations of Political Motives
Schiff has also claimed that Trump’s pro-Bitcoin stance is politically driven. He suggested that the former president is aligning with cryptocurrency backers to secure campaign donations. In May, Trump hosted major holders of the TRUMP meme coin at a White House dinner, a move that triggered criticism across political lines.
Adding to Schiff’s concerns, the Trump family’s financial platform, World Liberty Financial, recently secured a $100 million investment to support decentralized finance ventures. Donald Trump Jr. stated that this direction was taken due to difficulty accessing traditional financial institutions, rather than preference.
