Home News Cryptocurrency Peter Schiff’s Bank Closing Bolsters Bitcoin’s Case for Financial Freedom

Peter Schiff’s Bank Closing Bolsters Bitcoin’s Case for Financial Freedom

Peter Schiff’s Bank Closing Bolsters Bitcoin’s Case for Financial Freedom

Popular economist Peter Schiff, who is well known in the community for his anti-cryptocurrency stance, saw his bank shut down by Puerto Rico regulators. The revelation, however, prompted the cryptocurrency enthusiast community on Twitter to point out the “irony” Well, Schiff’s prediction for Bitcoin (BTC) came true for his own traditional bank.

Regulators in Puerto Rico closed Schiff’s bank for failing to maintain minimum net capital requirements, which further impacted customers as they lost access to their accounts after a subsequent block.

While acknowledging that “customers can lose money,” Schiff said he was unaware of the statutory minimums and was not presented with any type of legal notice prior to the sudden closure. And he added:

“It costs a fortune to run a small bank. That’s why I never made any money. The compliance costs are outrageous.”

Witnessing what many consider to be an epic plot twist, the cryptocurrency community took the opportunity to explain the importance of Bitcoin in reinventing the core of traditional finance.

Bitcoin podcaster Stephan Livera also weighed in on the development saying: “The [Schiff] has been a Bitcoin skeptic since $17.50.” The sudden closure of Schiff’s bank in Puerto Rico reignited discussions around Bitcoin’s resistance to judicial supremacy.

Read:  IRA Financial Trust to Sue Gemini for $36M Crypto Asset Theft in Mid-February

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

On the other end of the spectrum, Puerto Rico has been receptive to the acceptance of cryptocurrencies in the region. On April 20, authorities in Puerto Rico became the fourth jurisdiction in the Americas to grant a money transmission license to Binance.US, a Binance affiliate in the United States.

Although the cryptocurrency community sympathizes with Schiff and the bank’s clients for their losses, the episode further cements Bitcoin’s position as the ultimate substitute for traditional finance.

Analysts at Deutsche Bank are forecasting that BTC prices will reach $28,000 again by the end of the year, even though the bear market continues.

Analysts Marion Laboure and Galina Pozdnyakova expect the Standard and Poor’s (S&P) to return to January levels, which in turn could lead to a 30% increase in the value of Bitcoin from current levels by mid-2022, which which would take its price to the USD 28,000 mark.

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

Keep reading:

Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.