Bitcoin (CRYPTO: BTC) critic Peter Schiff has slammed government investments in cryptocurrency, arguing that any country holding digital assets is a "loser."
What Happened: In an X post on Friday, Schiff claimed that allocating public funds to crypto diverts capital from real wealth creation.
He stated, "The worst thing any government can do is encourage or subsidize this waste of resources."
He questioned why people would opt for crypto backed by fiat when tokenized gold is available.
His remarks sparked heated debate, with one trader sarcastically suggesting he launch a "Schiff Coin."
Schiff responded that it would only have value if fully backed and convertible into gold.
David Sacks On Government Crypto Holdings
In a Bloomberg Television interview on Friday, White House AI and crypto czar David Sacks addressed speculation about government-owned digital assets.
Sacks admitted he wasn't certain whether the government holds any crypto beyond Bitcoin—and guessed it might own some Ethereum (CRYPTO: ETH) as well.
He stated, "The reason why we need a Bitcoin reserve is that the federal government already owns some."
What's Next: Sacks emphasized that the first step under the executive order is to conduct a full government-wide audit to determine what digital assets are currently held.
These assets would then be safeguarded and managed with a long-term value strategy.
He also clarified that acquiring more BTC would not burden the federal deficit or taxpayers.
He remained uncertain whether government savings from DOGE, if any, would be used to expand its crypto reserves.
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