Peter Schiff Warns Trump's Move to Boost Bitcoin Poses Risks to the Stability of the USD

Economist Peter Schiff has strongly criticized President Donald Trump's increasing support for Bitcoin, stating that this could harm the American dollar. His statement came right after Trump praised the role of cryptocurrency in boosting the economy and creating new jobs. According to Schiff, buying Bitcoin by selling the US dollar could weaken the global position of the dollar. He emphasized that this trend could reduce demand for this currency, which he sees as a threat to the economy in general. However, Trump recently stated that Bitcoin "reduces pressure on the dollar," pointing to its increasing value and growing influence in the financial markets. Strategic Growth Bitcoin Reserve The federal government of America does not directly sell dollars to buy Bitcoin. Instead, they plan to develop a Strategic Bitcoin Reserve by using funds obtained through civil and criminal forfeiture. Some state governments are reportedly adopting similar strategies, using public money to establish cryptocurrency reserves for financial autonomy. Privately, Trump Media has raised $2.3 billion for its Bitcoin fund through a private offering. Schiff argues that using that capital to purchase Bitcoin would pose further economic risks, especially if that money was initially held in dollars or linked to convertible bonds. Allegations of Political Motives Schiff also stated that Trump's pro-Bitcoin stance is driven by political motives. He believes the former president is aligning with cryptocurrency supporters to secure donations for his campaign. In May, Trump hosted large holders of the meme coin TRUMP at a dinner at the White House, a move that sparked criticism on many political fronts. Adding to Schiff's concerns, Trump's family financial platform, World Liberty Financial, recently secured a $100 million investment to support decentralized finance projects. Donald Trump Jr. stated that this direction was taken due to difficulties in accessing traditional financial institutions, rather than any preference.

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