President Donald Trump announced that the U.S. government will establish a strategic cryptocurrency reserve comprising leading digital assets including Bitcoin, Ethereum, Solana, Cardano, and XRP. The decision, modeled after the nation’s traditional gold reserves, has ignited widespread debate among economists, industry leaders, and crypto enthusiasts regarding the rationale behind selecting these particular assets.
Economist Peter Schiff, known for his gold advocacy and skepticism towards Bitcoin, expressed reservations about including XRP in the reserve. Although he acknowledged the reasoning behind designating Bitcoin as “digital gold,” Schiff questioned the need for an XRP reserve. “I get the rationale for a Bitcoin reserve,” he stated, “but what’s the rationale for an XRP reserve? Why the hell would we need that?” His comments mirror the broader uncertainty among traditional financial experts who view Bitcoin as a more reliable store-of-value asset compared to XRP’s less understood utility.
In contrast, Cardano founder Charles Hoskinson defended the inclusion of Ripple’s native token. Hoskinson highlighted XRP’s technological innovation, its decade-long endurance through volatile market cycles, and its strong community backing. He argued that XRP’s role as a global standard in digital finance justifies its presence in the reserve. “XRP is great technology and has survived numerous harsh cycles, proving its strategic importance,” Hoskinson asserted, lending strong support to the administration’s decision.
I get the rationale for a Bitcoin reserve. I don't agree with it, but I get it. We have a gold reserve. Bitcoin is digital gold, which is better than analog gold. So let's create a Bitcoin reserve too. But what's the rationale for an XRP reserve? Why the hell would we need that?
— Peter Schiff (@PeterSchiff) March 2, 2025
The announcement has further stirred reactions within the crypto community. Ripple’s Chief Technology Officer, David Schwartz, responded with surprise on social media, indicating that Hoskinson’s backing of XRP was unexpected given historical tensions between crypto projects. As the government’s involvement in digital assets expands, debates over which cryptocurrencies warrant strategic status are set to intensify.
Ultimately, the U.S. move to create a cryptocurrency reserve signals a significant shift in digital finance policy. As both supporters and critics weigh in, the evolving discussion around XRP and other digital assets is likely to shape future governmental approaches to cryptocurrency, reinforcing the dynamic and rapidly changing landscape of the industry.
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Experts agree that this bold strategic move may redefine government policy and catalyze broader crypto market innovations.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
