Peter Schiff Expresses Concern that Bitcoin-Backed Mortgage Could Heighten Housing Market Dangers

Bitcoin critic, Peter Schiff, raises concerns about a recent mortgage product backed by cryptocurrency collateral, suggesting it could pose higher default risks for lenders. This follows the announcement of a partnership between Better and Coinbase, which aims to launch Fannie Mae-standard mortgages backed by digital tokens. The product will allow borrowers to use their Bitcoin or USDC holdings as collateral for down payments without liquidating them or incurring taxes. Schiff, however, counters this, arguing that the product’s structure essentially transfers risk to lenders. He also raises concerns about the inherent volatility of Bitcoin, suggesting that if its value crashes, the down payment could disappear. This comes at a time when Bitcoin is exhibiting renewed volatility, losing the $70,000 level and falling towards $69,000 due to broader market weakness.