Schiff’s Bank was shut down by Puerto Rico officials for failing to meet the net minimum capital requirements. Customers were consequently denied access to their accounts after a subsequent freeze.
Puerto Rico officials closed down the bank of prominent economist Peter Schiff, who is well-known in the community for his anti-crypto views. Schiff’s prognosis for Bitcoin (BTC) came true for his own traditional bank, which prompted Crypto Twitter to call out the “irony” in response to the news.
Customers suffered further consequences when Schiff’s bank was shut down by Puerto Rico regulators for failing to fulfill the net minimum capital standards because they lost access to their accounts after a subsequent account freeze.
Schiff acknowledged that “clients may lose money,” but said that he was not aware of the legal notice requirements and that he had not been given any prior to the abrupt shutdown. Added him:
“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 advantage of the chance to discuss the significance of Bitcoin in redesigning the foundation of conventional banking as witnesses to what many consider an epic narrative twist.
Stephan Livera, a bitcoin podcaster, also commented on the situation, saying, “He’s [Schiff] been a #bitcoin skeptic since $17.50.” The abrupt closing of Schiff’s bank in Puerto Rico sparked new debates about Bitcoin’s defiance of legal authority.
Others rhetorically assisted Schiff in identifying a viable substitute to conventional finance by posing the question, “Do you see why you need bitcoin now?”
On the other hand, Puerto Rico has been open to the use of cryptocurrencies there. Authorities in Puerto Rico granted Binance a money transmitter license on April 20, making it the fourth American jurisdiction to do so. US, a division of the cryptocurrency exchange Binance with a US presence.
The Bitcoin community sympathizes with Schiff and the bank’s clients for their losses, but the incident further strengthens Bitcoin’s position as the preferred alternative to conventional finance.
Despite a continuing bear market, analysts at Deutsche Bank predicted that BTC prices will rise back to $28,000 by the end of the year.
The Standard and Poor (S&P) is expected to recover to its January levels, according to analysts Marion Laboure and Galina Pozdnyakova. If this happens, Bitcoin’s value might rise by 30% from its present levels by the middle of 2022, reaching the $28,000 mark.