Peter Schiff’s bank closure strengthens Bitcoin’s cause for financial freedom
Prominent economist Peter Schiff, known in society for his anti-crypto sentiments, had his bank shut down by Puerto Rico regulators. However, the revelation led Crypto Twitter to point out the “irony” when Schiff’s prediction for Bitcoin (BTC) came true for his own traditional bank.
Puerto Rico’s regulators shut down Schiff’s bank for failing to maintain minimum capital requirements, which further affected customers when they lost access to their accounts following a subsequent freeze.
Despite no evidence of crime, the Puerto Rican authorities closed my bank anyway due to net capital issues, instead of allowing a sale to a highly qualified buyer who promises to inject capital far beyond regulatory minimum requirements. As a result, accounts are frozen and customers may lose money.
– Peter Schiff (@PeterSchiff) July 3, 2022
While acknowledging that “customers can lose money”, Schiff stated that he was not aware of the minimum regulatory requirements and was not presented with any legal notice before the abrupt closure. He added:
“It costs a fortune to run a small bank. That’s why I never really made any money. Compliance costs are outrageous. “
As a witness to what many consider an epic plot twist, the crypto community took the opportunity to explain the importance of Bitcoin to reinvent the core of traditional finance.
The irony of this is so funny!@Peter Schiff you realize that if you had used Bitcoin, this would not have been possible!
You should love decentralization https://t.co/cDCOWdMowL
– Coach K (30% Crypto, 70% USDC) (@Coachkcrypto) July 4, 2022
Bitcoin podcaster Stephan Livera also looked at the development when he said: “He is [Schiff] has been a #bit bitcoin skeptic since $ 17.50. “The sudden closure of Schiff’s bank in Puerto Rico resumed discussions about Bitcoin’s opposition to judicial rule.
“The irony here is invaluable,” @HodlMagoo added, while others rhetorically helped Schiff find a promising alternative to traditional finance, traces “Do you understand why you need bitcoin now?”
At the other end of the spectrum, Puerto Rico has been receptive to crypto acceptance in the region. On April 20, the Puerto Rican government became the fourth jurisdiction in the United States to grant a money transmitter license to Binance.US, a US-based subsidiary of the Binance crypto exchange.
While the crypto community sympathizes with Schiff and the bank’s customers for their losses, the episode further cements Bitcoin’s position as the ultimate replacement for traditional finance.
Related: Deutsche Bank analysts see Bitcoin recovering to $ 28K by December
Deutsche Bank analysts predicted that BTC prices would return to $ 28,000 by the end of the year despite an ongoing bear market.
Analysts Marion Labor and Galina Pozdnyakova envisioned that Standard and Poor’s (S&P) would return to January levels, which in turn could result in a 30% increase in Bitcoin’s value from current levels midway through 2022 – bringing the price to $ 28,000 mark.
