Responding To Plans For The Establishment Of Bitcoin Reserve, Economist Peter Schiff Suggests USA Coin

US economist Peter Schiff suggested Trump make USA Coin a strategic reserve fund for the country. (Photo; Doc. CoinMarketCap)

JAKARTA - On November 15, 2024, former President of the United States, Donald Trump, revealed his plans to form Strategic Bitcoin Reserves as part of efforts to strengthen the country's economy in the digital era.

This move aims to make Bitcoin one of the country's strategic reserves, along with gold and fiat currency. This plan immediately drew various responses, including criticism from well-known economist Peter Schiff, who considered the idea less effective and potentially detrimental to the economy.

As an alternative solution, Schiff proposed the creation of a digital currency called USA Coin which is considered more cost-effective and relevant for the future of the digital economy.

In his proposal, Schiff suggested that Coin's USA supply be limited to 21 million units, similar to the concept of scarcity in Bitcoin. In addition, he stressed the importance of advanced blockchain technology to ensure USA Coin can be used in various daily transactions.

"The creation of USA Coin by the United States government can be more economical than forming Strategic Bitcoin Reserves," Schiff said, quoted by CoinTurk, December 22.

Schiff believes that USA Coin can not only maintain value stability, but also provide great opportunities for the United States to take the lead in the era of digital currencies, without relying on Bitcoin, which he says has a fundamental weakness.

The plan to form Strategic Bitcoin Reserves has also drawn pros and cons from various parties. Nic Carter, an analyst at Castle Island Ventures, expressed concern that this move could actually weaken the dollar's position as a global reserve currency. Bitcoin reserves can reduce world confidence in the dollar and weaken its status in the global market," Carter said.

However, there are other views that support this idea. CryptoQuant CEO, Ki Young Ju, sees Strategic Bitcoin Reserves as an innovative strategy to help balance the growing US national debt. According to him, this step could be a breakthrough in overcoming the country's fiscal problems.

The debate about the benefits and risks of Strategic Bitcoin Reserves continues to grow. In the midst of the polemic, Schiff's proposal on USA Coin is considered a new approach to be considered. Using advanced blockchain, USA Coin can be a more measurable and flexible alternative to sustain the digital economy of the United States.

The United States is now at an important crossroads in determining the direction of digital economy policy, between choosing new innovations or sticking to traditional financial systems.