Peter Schiff’s bank closure strengthens Bitcoin case for financial freedom

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Renowned economist Peter Schiff, who is well known in the community for his anti-crypto sentiments, had his bank closed by Puerto Rican regulators. However, the revelation pointed to Crypto Twitter as “ironically”, as Schiff’s prediction for Bitcoin (BTC) had come true for his own traditional bank.

Puerto Rican regulators closed Schiff’s bank for not maintaining net minimum capital requirements, which further affected customers as they lost access to their accounts following the subsequent freeze.

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Acknowledging that “customers can lose money,” Schiff said he was unaware of regulatory minimums and had not been presented with any kind of legal notice before the abrupt shutdown. He added:

“It costs a fortune to run a small bank. So I never really made any money. The compliance cost is outrageous. ,

Witnessing what many consider to be an epic plot twist, the crypto community took the opportunity to explain the importance of bitcoin in reestablishing the core of traditional finance.

Bitcoin podcaster Stephen Livera also said of the development, “He (Schiff) is a #bitcoin skeptic since $17.50 (it’s currently $19,100).” The sudden closure of Schiff’s bank in Puerto Rico sparked discussion about bitcoin’s resistance to judicial supremacy.

“The irony here is priceless,” added @HodlMagoo, while others rhetorically helped Schiff find a promising alternative to traditional finance, ask “Do you understand why you need bitcoin now?”

On the other end of the spectrum, Puerto Rico has been receptive to crypto acceptance in the region. On April 20, the Puerto Rico authority became the fourth jurisdiction in the US to grant a money transmitter license to Binance.US, a United States-based subsidiary of crypto exchange Binance.

While the crypto community sympathizes with Schiff and the bank’s customers for their loss, this episode further cements bitcoin’s position as the ultimate replacement for traditional finance.

related: Deutsche Bank analysts believe bitcoin will recover to $28K by December

Deutsche Bank analysts predict BTC price will return to $28,000 by the end of this year, even if the bear market continues.

Analysts Marion Labourey and Galina Pozdnikova envision Standard & Poor’s (S&P) return to its January levels, which could result in a 30% increase in the value of bitcoin from current levels in mid-2022 — its price of $28,000. can bring. scar.