Peter Schiff Slams Bitcoin Reserve Plan as “Ultimate Taxpayer Boondoggle”

Renowned financial commentator Peter Schiff has harshly criticized the proposal to create a U.S. Bitcoin reserve, calling it “the ultimate taxpayer boondoggle.” Schiff argues that forcing American taxpayers to hold the leading cryptocurrency would be worse than the controversial Wall Street bailout during the 2008 global financial crisis.

According to Schiff, such a move would effectively make the public “involuntary bagholders” in what he describes as a “Bitcoin pyramid scheme.” He warned that this policy would validate the “worst fears” of America’s founding fathers, highlighting concerns about government overreach and irresponsible fiscal policy.

Schiff’s comments come amid growing discussions in Washington over integrating Bitcoin into the U.S. financial system, including proposals for state and federal reserves. Supporters claim that adding Bitcoin could strengthen national reserves and hedge against inflation, but critics like Schiff see it as exposing taxpayers to extreme volatility and speculative risk.

The debate reflects broader divisions over cryptocurrency’s role in the economy. While Bitcoin continues to gain traction among institutions and retail investors, skeptics argue its price swings and lack of intrinsic value make it unsuitable as a reserve asset.

Schiff, a long-time Bitcoin critic and gold advocate, has repeatedly warned investors that cryptocurrency’s rapid rise is unsustainable and destined for collapse. His latest remarks amplify concerns about merging volatile digital assets with public funds and highlight ongoing tensions between traditional financial experts and crypto proponents.

With U.S. regulators and lawmakers weighing future cryptocurrency policies, Schiff’s sharp critique underscores the heated battle over Bitcoin’s legitimacy in mainstream finance and its potential implications for taxpayers.