Former US President Donald Trump Plans to Form Strategic Bitcoin Reserves, Economist Peter Schiff Offers Alternative Solution

On November 15, 2024, former President of the United States, Donald Trump, revealed his plans to form Strategic Bitcoin Reserves as part of efforts

Former US President Donald Trump revealed his plan to form Strategic Bitcoin Reserves on November 15, 2024, as part of efforts to strengthen the country's economy in the digital era.

The move aims to make Bitcoin one of the country's strategic reserves, alongside gold and fiat currency. The plan has drawn mixed reactions, including criticism from renowned economist Peter Schiff, who sees the idea as less efficient and potentially harmful to the economy.

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

In his proposal, Schiff suggests limiting the supply of USA Coin to 21 million units, echoing the scarcity concept employed by Bitcoin. He also emphasizes the need for advanced blockchain technology to enable USA Coin for various daily transactions.

"The creation of USA Coin by the United States government will be more economical compared to forming the Strategic Bitcoin Reserves," Schiff said, as quoted by CoinTurk on December 22.

According to Schiff, not only will USA Coin maintain price stability, but it will also present a significant opportunity for the United States to lead the digital currency era without relying on Bitcoin, which he claims has a fundamental weakness.

The plan to form Strategic Bitcoin Reserves has also drawn both support and opposition from various parties. Nic Carter, an analyst at Castle Island Ventures, expressed his concern that the move could weaken the dollar's position as a world reserve currency.

"Bitcoin reserves can reduce world confidence in the dollar and weaken its status in the global market," said Carter.

On the other hand, there are also views that support this idea. CryptoQuant CEO Ki Young Ju sees the 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 discourse on the benefits and risks of Strategic Bitcoin Reserves continues to expand. Amidst the polemic, Schiff's proposal for USA Coin is seen as a new approach that should be considered. Utilizing advanced blockchain, USA Coin could serve as a more scalable and sustainable alternative to support the digital economy of the United States.

The United States now stands at a crucial juncture in determining the direction of digital economy policy, whether to embrace new innovations or remain tethered to traditional financial systems.