For years, Peter Schiff has stood as one of Bitcoin’s most vocal critics. A staunch advocate for gold and traditional financial systems, he has repeatedly dismissed Bitcoin as a speculative bubble with no intrinsic value. However, in a surprising shift, Schiff recently acknowledged Bitcoin as “digital gold” and expressed understanding—even if not agreement—toward the idea of a national Bitcoin strategic reserve. What makes this moment even more striking is his pointed skepticism about another digital asset included in the same proposal: XRP.
This change in tone comes amid growing momentum in U.S. policy circles around cryptocurrency adoption, particularly following former President Donald Trump’s recent endorsement of a cryptocurrency strategic reserve that includes not only Bitcoin and Ethereum but also XRP, Solana (SOL), and Cardano (ADA). The announcement triggered a market surge, with XRP and ADA jumping 28.5% and 63.3% respectively within 24 hours.
But while markets reacted positively, critical voices like Schiff’s highlight a deeper debate: What defines strategic value in digital assets?
Understanding the Case for a Bitcoin Reserve
Schiff’s evolving perspective reflects a broader shift in how institutional players view Bitcoin. In a March 2, 2025 tweet, he stated:
“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.”
This marks a significant softening from his previous stance. By comparing Bitcoin to gold—a long-standing pillar of national reserves—he implicitly validates its role as a store of value. Despite his preference for physical precious metals, Schiff now recognizes the logic behind treating Bitcoin as a modern alternative to gold in portfolio diversification and long-term wealth preservation.
The concept of digital gold hinges on scarcity, durability, decentralization, and resistance to censorship—all traits shared by gold and emulated by Bitcoin through its capped supply of 21 million coins and robust blockchain infrastructure.
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Why XRP Stands Out—And Draws Skepticism
Where Schiff struggles to follow the logic is with XRP’s inclusion in the proposed strategic reserve.
“But what's the rationale for an XRP reserve? Why the hell would we need that?”
His question cuts to the heart of a critical distinction: not all cryptocurrencies serve the same purpose. While Bitcoin is widely seen as a decentralized store of value, XRP was designed primarily for fast, low-cost cross-border payments, operating within a more centralized framework governed by Ripple Labs.
Unlike Bitcoin, which derives value from scarcity and decentralization, XRP’s utility is tied to financial institutions adopting it for remittances and liquidity solutions. This functional focus makes it less appealing as a long-term reserve asset—especially when compared to assets with proven scarcity and censorship resistance.
Critics argue that including XRP alongside BTC and ETH may dilute the credibility of the entire strategic reserve initiative. Supporters, however, suggest that diversification across different blockchain use cases—value storage (BTC), smart contracts (ETH), and payment efficiency (XRP)—could strengthen national exposure to transformative financial technologies.
The “USA Coin” Proposal: Schiff’s Alternative Vision
Interestingly, Schiff isn’t entirely opposed to government involvement in digital currency—he just envisions a different path.
In December 2024, he introduced the idea of USA Coin, a hypothetical U.S.-issued digital currency with a fixed supply of 21 million tokens, mirroring Bitcoin’s scarcity model but built on an upgraded blockchain optimized 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 likenesses of Trump and Elon Musk, urging executive action:
“@realDonaldTrump needs to establish this coin by executive order… #Bitcoin is for losers. USAcoin is for winners.”
While clearly satirical in tone, the proposal underscores a genuine belief: that sovereign nations should control their monetary future rather than rely on decentralized networks beyond governmental oversight.
Yet, such an approach raises concerns about centralization, inflationary risks despite supply caps, and potential misuse of monetary power—issues that Bitcoin was specifically designed to avoid.
Market Reaction and Policy Implications
Trump’s endorsement of a multi-asset crypto reserve has ignited both enthusiasm and debate. Proponents see it as a bold step toward modernizing U.S. financial infrastructure and asserting leadership in the global digital economy. Detractors warn it could politicize cryptocurrency adoption or favor certain projects without rigorous evaluation.
Moreover, the inclusion of lesser-established assets like ADA and SOL adds complexity. While both have strong technological foundations—Cardano with its research-driven development and Solana with its high-speed throughput—their volatility and relatively shorter track records make them riskier candidates for national reserves.
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FAQ Section
Q: Why did Peter Schiff change his view on Bitcoin?
A: While still skeptical, Schiff now acknowledges Bitcoin’s structural similarities to gold—scarcity, durability, and growing institutional acceptance—making it understandable, if not acceptable, as a strategic reserve asset.
Q: Is XRP suitable for national reserves?
A: XRP excels in payment efficiency but lacks the decentralization and censorship resistance typical of reserve-grade assets. Its centralized issuance model raises questions about long-term reliability compared to Bitcoin.
Q: What is the purpose of a cryptocurrency strategic reserve?
A: It aims to diversify national holdings into high-potential digital assets, hedge against fiat devaluation, and position the U.S. at the forefront of blockchain innovation.
Q: Could the U.S. really launch its own digital currency like “USA Coin”?
A: Technically possible, but introducing a government-backed digital currency with fixed supply faces economic and political hurdles, especially within existing monetary frameworks.
Q: How did markets react to Trump’s crypto reserve announcement?
A: Immediate bullish momentum: XRP rose 28.5%, ADA surged 63.3%, and Bitcoin broke above $89,000 amid increased speculation of regulatory support.
Q: Does including multiple cryptos weaken the reserve proposal?
A: Some experts believe focusing on Bitcoin alone maintains clarity and strength; others argue diversified exposure captures broader innovation across blockchain ecosystems.
Final Thoughts: Strategic Value in the Digital Age
Peter Schiff’s partial endorsement of Bitcoin as digital gold symbolizes a pivotal moment in mainstream financial discourse. Even long-time critics now recognize that blockchain-based assets are no longer fringe experiments—they’re part of a global rethinking of money, value, and sovereignty.
However, the debate over which assets belong in a national reserve remains unresolved. For purists, only decentralized, scarce, and battle-tested networks like Bitcoin qualify. For pragmatists, utility-driven assets like XRP offer complementary advantages in payment innovation.
As policymakers navigate this new terrain, the core challenge will be balancing vision with rigor—embracing transformation without compromising fiscal responsibility.