Peter Schiff, a prominent economist, who is well known in the community for his anti-crypto sentiments, had his bank shut down by the Puerto Rico regulators. The revelation, moreover, led to the crypto twitter pointing out the “irony” as Schiff’s prediction for the Bitcoin (BTC) came true for his own traditional bank.
Puerto Rico regulators closed down Schiff’s bank for not maintaining the net minimum capital requirements, which also further affected the customers as they lost access to their accounts following a subsequent freeze.
While acknowledging that customers may lose money, Schiff stated that he was unaware of the regulatory minimums and was not presented with any other form of legal notice prior to the abrupt closure. He also added that it costs a fortune to run a small bank. That’s why I never really made any money. The compliance costs are outrageous.
As a witness to what many consider an epic plot twist, the crypto community took the new opportunity to explain the importance of Bitcoin in reinventing the core of traditional finance.
Stephan Livera, a Bitcoin podcaster, too, chimed in on the development as he said that he had been a bitcoin skeptic since $17.50 (it is currently $19100). The sudden closure of Schiff’s bank in Puerto Rico reignited the discussions around Bitcoin’s resistance to judicial supremacy.
The irony here is priceless, added @HodlMagoo while others historically helped Schiff find a promising alternative to traditional finance, asking, “Do you really understand why you need bitcoin now?”
#Bitcoin has failed to live up to the hype and those institutions that put a toe in the water last year are not likely to take the plunge. This year most will opt to cut their losses and sell. I doubt @saylor and @nayibbukele have enough dry powder to keep the market propped up.
— Peter Schiff (@PeterSchiff) January 18, 2022
On the other end of the spectrum, Puerto Rico has been receptive to crypto acceptance in the entire region. On the 20th of April, Puerto Rico authorities became the fourth jurisdiction in the US to award a money transmitter license to Binance.us, a United States-based subsidiary of crypto exchange Binance.
While the crypto community empathizes with Schiff and the bank’s customers for their losses, the episode further cements Bitcoin’s position as the ultimate replacement for traditional finance.
Some analysts from the Deutsche Bank forecasted that BTC prices to rebound back to $28000 by the end of the year despite an ongoing bear market.
Analysts Galina Pozdnyakova and Marion Laboure envisioned the Standard and Poor (S&P) to rebound back to its January levels, which in turn, could result in a 30% increase in Bitcoin’s value from the current level midway through 2022 – bringing up its price to the $28000 mark.
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity’s role is to inform the cryptocurrency and blockchain community about what’s going on in this space. Please do your own due diligence before making any investment. Blockmanity won’t be responsible for any loss of funds.
Get the latest news on Blockchain only on Blockmanity.com. Subscribe to us on Google news and do follow us on Twitter @Blockmanity
Did you like the news you just read? Please leave a feedback to help us serve you better