Puerto Rico regulators shut down Peter Schiff’s bank, a prominent economist who is known for his anti-crypto views. Crypto Twitter pointed out the “irony” in Schiff’s prediction of Bitcoin (BTC), which was fulfilled for his traditional bank.
Puerto Rico regulators shut down Schiff’s bank because it failed to maintain the net minimum capital requirements. This further affected the customers who lost their access to their accounts after a subsequent freeze.
Puerto Rico regulators closed my bank despite no evidence of crime. They preferred to sell it to a qualified buyer who would inject capital well beyond regulatory minimums. Customers may lose their money as a result.
— Peter Schiff (@PeterSchiff), July 3, 2022
While Schiff acknowledged that customers may lose money, he stated that he wasn’t aware of the minimum regulatory requirements and that a notice of any kind was not given to him prior to abrupt closing. He continued:
It costs a lot to manage a small bank. This is why I have never made any real money. Compliance costs are ridiculous.”
The crypto community was a witness to a dramatic plot twist. They used the opportunity to explain how Bitcoin is helping to reinvent traditional finance.
This is hilarious! @PeterSchiff, you realize that this wouldn’t have been possible if you used Bitcoin. You should be loving decentralization https://t.co/cDCOWdMowL
Coach K (30% Crypto and 70% USDC) (@Coachkcrypto, July 4, 2022
Stephan Livera, a Bitcoin podcaster, also commented on the developments. He said that Schiff had been a #bitcoin skeptical since $17.50 (it is currently $19,100).” Discussions around Bitcoin’s resistance against judicial supremacy were rekindled by the sudden closing of Schiff’s Puerto Rico bank.
“The irony is priceless,” said @HodlMagoo, while others helped Schiff to find a promising alternative for traditional finance. They asked “Do you understand why bitcoin is so important now?”
Puerto Rico is open to crypto acceptance. On April 20, Puerto Rico became the fourth American jurisdiction to issue a money transmitter license for Binance.US. This subsidiary is based in the United States.
The crypto community sympathizes with Schiff, the bank’s customers, and this episode further cements Bitcoin as the ultimate alternative to traditional finance.
Similar: Deutsche Bank analysts predict Bitcoin will recover to $28K in December
Deutsche Bank analysts forecasted that BTC prices would rebound to $28,000 by year’s end, despite a continuing bear market.
Galina Pozdnyakova and Marion Laboure, analysts, envisioned that Standard and Poor (S&P), would rebound to January levels. This could lead to a 30% rise in Bitcoin’s price from its current levels midway through 2022, bringing it up to $28,000.