The long-time Bitcoin skeptic Peter Schiff has made a surprising shift in tone, publicly acknowledging Bitcoin as "digital gold" and expressing understanding for the logic behind a national Bitcoin strategic reserve—though he remains deeply puzzled by the inclusion of XRP in such plans.
This change comes amid growing momentum in U.S. policy circles, as former President Donald Trump announced a proposed cryptocurrency strategic reserve that would include not only Bitcoin (BTC) and Ethereum (ETH), but also XRP, Solana (SOL), and Cardano (ADA). The news triggered a sharp market rally, with XRP surging 28.5% and ADA jumping 63.3% within 24 hours.
While many investors celebrated the bullish signal, skepticism remains—especially from traditional financial critics like Schiff.
Peter Schiff: From Bitcoin Critic to Cautious Observer
Peter Schiff, CEO of SchiffGold and a lifelong advocate for precious metals, has been one of Bitcoin’s most vocal opponents for over a decade. He has consistently argued that gold—not crypto—is the true store of value and has mocked Bitcoin as a speculative bubble with no intrinsic worth.
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However, in a recent social media post on March 2, 2025, Schiff showed signs of evolving views:
"I get the rationale for a Bitcoin reserve. I don't agree with it, but I get it. We have a gold reserve. Bitcoin is digital gold, which is better than analog gold. So let's create a Bitcoin reserve too. But what's the rationale for an XRP reserve? Why the hell would we need that?"
This marks a notable softening. For the first time, Schiff concedes that Bitcoin’s narrative as digital gold has gained enough traction—even among policymakers—that its inclusion in national reserves is logically defensible, if not personally agreeable.
Why XRP Stands Out in the Strategic Reserve Debate
Schiff’s confusion centers on XRP, a digital asset developed by Ripple Labs primarily for cross-border payments. Unlike Bitcoin, which is decentralized and functions as a store of value, XRP is designed for utility—specifically, fast and low-cost international settlements.
While Trump’s team hasn’t released detailed justifications, possible reasons for including XRP may include:
- Enhancing U.S. competitiveness in global payments infrastructure
- Supporting innovation in blockchain-based remittance systems
- Diversifying beyond proof-of-work assets like BTC and ETH
Still, critics argue that holding XRP as a strategic reserve lacks the same economic foundation as gold or even Bitcoin. There's no precedent for nations stockpiling payment tokens, and XRP’s value is closely tied to regulatory outcomes—particularly ongoing litigation around whether it qualifies as a security.
The “USA Coin” Proposal: Schiff’s Alternative Vision
Interestingly, Schiff himself once proposed a government-backed digital currency as an alternative to buying existing cryptocurrencies.
In December 2024, he introduced the idea of a "USA Coin"—a hypothetical U.S.-issued digital asset with a fixed supply of 21 million units, mirroring Bitcoin’s scarcity model but built on upgraded blockchain technology for real-world payments.
"Instead of creating a #Bitcoin strategic reserve, the U.S. could save a lot of money by creating #USAcoin... This way we can all get rich."
He even designed a mock logo featuring golden likenesses of Trump and Elon Musk, urging the administration to establish the coin via executive order.
"#Bitcoin is for losers. USAcoin is for winners. Buy it, or have fun staying poor."
Though clearly tongue-in-cheek, the proposal reflects a deeper belief: that if the U.S. is to embrace digital assets, it should do so through sovereign control—not by purchasing decentralized currencies developed outside its jurisdiction.
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Market Reaction and Policy Implications
Trump’s announcement has reignited debate over the role of digital assets in national reserves. Proponents argue that diversifying into high-growth cryptos could generate long-term returns and position the U.S. as a leader in financial technology.
Yet concerns persist:
- Could including speculative assets like XRP undermine the credibility of the reserve?
- Will Congress approve such a plan, given partisan divides on crypto regulation?
- Does treating BTC as “digital gold” risk normalizing volatility in core financial systems?
Despite these questions, the mere suggestion has had real market impact—demonstrating how policy signals can drive investor sentiment.
FAQ: Understanding the Crypto Strategic Reserve Concept
Q: What is a cryptocurrency strategic reserve?
A: It’s a proposal for governments to hold digital assets like Bitcoin or XRP as part of their national reserves—similar to how they hold gold or foreign currencies—to hedge against inflation, diversify holdings, or support technological leadership.
Q: Why compare Bitcoin to gold?
A: Both are seen as scarce, durable, and resistant to inflation. Bitcoin’s fixed supply of 21 million coins mirrors gold’s limited physical availability, earning it the “digital gold” label.
Q: Is there historical precedent for non-traditional reserves?
A: Not exactly. Nations typically hold fiat currencies (like USD or EUR), gold, or IMF Special Drawing Rights (SDRs). Holding speculative tech-driven assets would be unprecedented.
Q: Why include XRP over other cryptos?
A: Likely due to its focus on cross-border payments—a key area of financial infrastructure. However, no official technical justification has been released.
Q: Can a government legally buy cryptocurrencies?
A: Yes—several countries already hold Bitcoin (e.g., El Salvador). The U.S. could do so via Treasury operations, though congressional approval may be required for large-scale purchases.
Q: What are the risks of a crypto reserve?
A: Price volatility, regulatory uncertainty, cybersecurity threats, and potential conflicts of interest if the government influences markets.
A Shifting Narrative in Digital Finance
Schiff’s partial acceptance of Bitcoin as digital gold underscores how mainstream the asset has become—even among its fiercest critics. While he still champions gold and national monetary sovereignty, his acknowledgment signals that Bitcoin’s institutional legitimacy is no longer debatable.
At the same time, the debate over XRP highlights a critical divide: between store-of-value cryptos (like BTC) and utility-focused tokens (like XRP). One may belong in a reserve portfolio; the other may be better suited for infrastructure use.
As governments explore digital asset strategies in 2025 and beyond, clarity on these distinctions will be essential—not just for policy credibility, but for global financial stability.
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The conversation is no longer if nations should engage with crypto—but how. And with figures like Peter Schiff adjusting their views, the era of digital reserves may be closer than we think.