Peter Schiff bank closure shows why Bitcoin is vital for financial independence, as the nascent asset class has allowed 4 million unbanked in El Salvador to get banking facilities.
Since the collapse of his bank in Puerto Rico, Peter Schiff has been the target of criticism from Bitcoin (BTC) supporters who point out that if he had been utilizing BTC, this wouldn’t have happened.
President of El Salvador Nayib Bukele, who has spoken with Schiff quite a bit ever since El Salvador made BTC official tender last year, is the latest to make fun of the proponent of gold.
In a tweet from January of this year, Bukele criticized Bitcoin and predicted that people like Microstrategy CEO Michael Saylor and himself would soon have to sell their BTC holdings when the price fell. In response to the tweet, the president inquired about the man’s bank.
The two reviewers’ conversation takes place at a time when the world’s financial markets are in ruins. The equity market is at an all-time low while the cryptocurrency market has lost more than 60% of its market worth since its peak.
Peter Schiff has been outspoken about the closing of his bank and has laid the blame for it on the dishonest local administration. He claims that the government is illegally attempting to extort him in retaliation for his criticism.
Peter Schiff asserts that the bank’s closure was a result of his criticism of the government, but this just serves to emphasize how centralized financial organizations like banks frequently stifle financial freedom. If the owner hasn’t placed their cash on a centralized exchange, the price of BTC may change over time, but they remain fully in control of their money.
Critics frequently draw attention to the market’s turbulence. However, the traditional financial sector isn’t much better either, with inflation reaching decade-high levels and numerous leading companies posting greater losses than BTC in 2022.
BTC has been essential in granting financial freedom to approximately 70% of El Salvador’s unbanked populace. The nation of Central America has onboarded 4 million unbanked using their national Bitcoin wallet, despite the fact that the price of BTC has fallen more than 60% from its peak and opponents frequently like to point out the reduction in the country’s BTC purchases.
The introduction of BTC has improved El Salvador’s remittance network, accounting for millions in cross-border transactions at no cost. The nation has demonstrated how Bitcoin may give unbanked people financial freedom.
