Peter Schiff's bank closure underlines the importance of Bitcoin.
Bitcoin enables financial freedom for those that don't have access to banking facilities and has already helped nearly 4 million people in El Salvador. Peter Schiff's bank closure underlines how crucial it is.
Since the closure of his bank in Puerto Rico, Peter Schiff has been getting attacked by Bitcoin (BTC) supporters, who remind him that if he had used BTC, this wouldn't have happened.
El Salvador President Nayib Bukele has had a number of interactions with Schiff since the country adopted BTC as its legal tender last year. In the latest instance, Bukele taunted the gold proponent, who is none other than Schiff.
In January 2019, Representative Adam Schiff tweeted that BTC's price would soon drop and predicted that Michael Saylor and Bukele himself would have to sell their BTC holdings. In response, the President asked about his bank.
The exchange between the two critics takes place when the global financial markets are in turmoil. In one case, the crypto market has lost more than 60% of its market cap from its peak, and on the other, the equity market is at an all-time low.
How’s your bank going?
— Nayib Bukele (@nayibbukele) July 6, 2022
Schiff has been quite vocal about his bank closure and has blamed the corrupt local government for it. He says that the government is illegally trying to extort him for criticizing them.
The IRS and J5 targeted my bank due to my outspoken criticism of excess government taxation and regulation. Their illegal efforts to punish free speech, deprive me of property without due process, and needlessly put thousands of customers at risk, actually justifies my criticism.
— Peter Schiff (@PeterSchiff) July 6, 2022
Schiff's claim that the bank was closed down due to his criticism of the government is a good example of how centralized financial institutions such as banks can restrict financial freedom. The price of BTC might change over time, but if an owner has not put their funds on a centralized exchange, they are in full control of them.
The crypto market is often criticized for its volatility. However, the traditional financial market is also unstable, as inflation has reached decade highs and some of the top stocks have lost more value than BTC in 2022.
BTC has been a big help in providing financial freedom to almost 70% of the unbanked population of El Salvador. Although the price of BTC has dropped more than 60% from its peak, and critics often like to point out the decline in BTC purchases by El Salvador, the country has onboarded 4 million unbanked using their national Bitcoin wallet.
The remittance network in El Salvador has been improved by the BTC adoption, which has made millions of cross-border transactions with minimal fees. The country has proven that Bitcoin can provide financial freedom to the unbanked.
