Peter Schiff's Bank Closure Strengthens Arguments in Favor of Bitcoin
Renowned economist Peter Schiff, who is well known in society for his anti-crypto sentiments, has closed his bank in Puerto Rico. The revelation, however, led Crypto Twitter to point out the "irony" as Schiff's prediction for bitcoin reflected on his own traditional bank.
Puerto Rico regulators shut down Schiff's bank for not maintaining net minimum capital requirements, further impacting customers as they lost access to their accounts after a subsequent freeze.
Despite the lack of evidence of crimes, the regulatory authorities of Puerto Rico still closed my bank due to problems with net worth, instead of allowing the sale to a highly qualified buyer promising to inject capital well above regulatory minimums. As a result, accounts are frozen and customers may lose money.
- Peter Schiff (@PeterSchiff) July 3, 2022
While acknowledging that "customers could lose money," Schiff said he was unaware of the regulatory minimums and had not received any legal notice prior to the sudden closure. He added:
"Running a small bank costs a fortune. That's why I've never made any money. The compliance costs are outrageous."
As a witness to what many consider an epic plot twist, the crypto community took the opportunity to explain the importance of bitcoin in rethinking the core of traditional finance.
On the other hand Puerto Rico is susceptible to crypto acceptance in the region. On April 20, the authorities of Puerto Rico became the fourth jurisdiction in America to issue a license to transfer money to Binance.US, the American subsidiary of the Binance crypto exchange. While the crypto community empathizes with Schiff and the bank's clients for their losses, this episode further strengthens bitcoin's position as the ultimate replacement for traditional finance.
Deutsche Bank analysts predicted that BTC prices would return to $28,000 by the end of the year, despite the ongoing bear market. Analysts Marion Laboure and Galina Pozdnyakova assumed that Standard and Poor (S&P) would return to January levels, which, in turn, could lead to a 30% increase in the value of bitcoin compared to current levels in mid-2022, bringing its price to $28,000.
https://coin-signal.com/cryptonews/peter-schiffs-bank-closure-strengthens-arguments-in-favor-of-bitcoin-2/
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