Peter Schiff warns Trump’s Bitcoin strategy could trigger a collapse of the US dollar, criticizing the former president’s growing support for digital assets. Schiff, a long-time Bitcoin skeptic, issued fresh warnings after Trump praised the crypto sector for strengthening the American economy and creating new jobs.
Schiff argued that increased Bitcoin adoption threatens the dollar’s dominance and risks destabilizing the nation’s financial system. He claimed that converting dollars into Bitcoin weakens demand for the greenback and undermines its position as the world’s reserve currency.
Schiff cautions against Bitcoin’s impact on US monetary stability
Speaking on social media, Schiff warned that the dollar is under pressure due to rising interest in Bitcoin. He suggested that allocating national resources to support Bitcoin could damage the economy. Schiff maintained that selling dollars to acquire Bitcoin strains the currency’s strength and could accelerate its decline on the global stage.
His remarks followed Trump’s statement during a recent White House press briefing where the former president said crypto has become a powerful part of the economy. Trump stated that the industry is generating jobs and could ease the burden on the dollar, calling this shift a positive development.
Trump strengthens pro-Bitcoin stance as adoption grows
Trump’s support for Bitcoin marks a notable shift in policy as several US states begin investing in Bitcoin reserves. Reports suggest the Trump administration is considering the use of seized crypto assets to establish a Strategic Bitcoin Reserve. This initiative aligns with broader moves across state governments to allocate funds toward building digital asset treasuries.
Analysts, including digital asset researcher Anders X, linked Trump’s comments to the Triffin Dilemma, which highlights the tension between domestic economic needs and maintaining the dollar as a global reserve. Anders explained that Bitcoin may present a solution by reducing the structural weaknesses created by dollar dependence in global trade.
Political and personal interests fuel controversy
Schiff also criticized Trump for accepting Bitcoin as campaign contributions. He claimed the move is aimed at attracting wealthy crypto donors ahead of the election. The economist’s concerns escalated after reports surfaced of a private dinner where top TRUMP meme coin holders spent $150 million for access to Trump.
In the meantime, Trump Media gained about 2.3 billion dollars to promote treasury dealings with Bitcoin. Moreover, World Liberty Financial which is affiliated to the Trump family raised $100 million to scale its DeFi business. It is reported, that Trump family resorted to Bitcoin when they were debanked out of the mainstream financial system.