Puerto Rico regulators closed down Schiff’s bank for not preserving the net minimum capital necessities. As a result, customers lost access to their accounts following a successive freeze.
Prominent economist Peter Schiff, a well-known anti-crypto, had his bank shut down by Puerto Rico regulators. The disclosure, however, led to Crypto Twitter pointing out the “irony” as Schiff’s forecast for Bitcoin (BTC) came true for his own traditional bank.
Puerto Rico officials closed down Schiff’s bank for not maintaining the net minimum capital requirements, which further squeezed the customers as they lost access to their accounts following a subsequent freeze.
While acknowledging that “customers may lose money,” Schiff claimed that he was unaware of the regulatory minimums and was not presented with any legal notice prior to the sudden closure. He added:
“It costs a fortune to run a small bank. That’s why I never really made any money. The compliance costs are outrageous.”
The crypto community took the opportunity to explain the importance of Bitcoin in reinventing the core of traditional finance.
Bitcoin podcaster Stephan Livera, too, struck in on the development as he said, “He’s (Schiff) been a #bitcoin skeptic since $17.50 (it’s currently $19,100).” 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 rhetorically helped Schiff find a promising substitute to traditional finance, asking “Do you understand why you need bitcoin now?”
On the other end of the spectrum, Puerto Rico has been interested in crypto acceptance in the region. Puerto Rico authorities became the fourth jurisdiction in America to award a money transmitter license to Binance on April 20,.US, a United States-based subsidiary of crypto exchange Binance.
While the crypto community has compassion for Schiff and the bank’s customers for their losses, the episode further strengthens Bitcoin’s position as the ultimate replacement for traditional finance.
Analysts from Deutsche Bank predicted BTC prices to echo back to $28,000 by the end of the year despite an ongoing bear market.
Analysts Marion Laboure and Galina Pozdnyakova intended the Standard and Poor (S&P) to rebound back to its January levels, which in turn, could result in a 30% growth in Bitcoin’s value from recent levels midway through 2022 — bringing up its price to the $28,000 mark.
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