Peter Schiff Sounds Alarm On Bitcoin-Backed Mortgages

Peter Schiff has raised concerns about a new housing finance initiative allowing borrowers to use Bitcoin and USDC as collateral for mortgages, facilitated by Fannie Mae, Better Home & Finance, and Coinbase. Schiff argues this creates risks for taxpayers, as it allows crypto holders to benefit from rising asset values while potentially defaulting if prices fall. The program features a 40% loan-to-value ratio to mitigate volatility, but Schiff remains skeptical about its long-term viability. This initiative comes amid rising mortgage rates, which have reached a six-month high of 6.38%.