XRP and Bitcoin: The Debate Over U.S. Digital Asset Reserve Intensifies
XRP and Bitcoin – A recent executive order signed by former U.S. President Donald Trump has ignited debates in the crypto community regarding the potential inclusion of XRP in the nation’s Strategic Reserve. The order, signed early in Trump’s presidency, establishes a Presidential Working Group aimed at creating a federal regulatory framework for digital assets, with a key focus on developing a national digital assets stockpile.
The Proposal for a Digital Asset Reserve
The executive order’s details highlight the proposal for a strategic national reserve for digital assets, a move many initially assumed would center around Bitcoin. However, the conversation has now expanded to include other digital assets, particularly XRP. This has drawn significant attention, especially following recent meetings between Trump and prominent crypto executives, including Ripple CEO Brad Garlinghouse.
Bitcoin Advocates Voice Concerns
Not everyone is on board with the idea of diversifying the reserve beyond Bitcoin. Pierre Rochard, Vice President of Research at Riot Platforms, publicly opposed the inclusion of XRP. Rochard claims that Ripple has been lobbying against a Bitcoin-centric reserve, aiming to steer attention away from Bitcoin to protect its interests, particularly regarding central bank digital currencies (CBDCs). Ripple launched its own CBDC platform in May 2023, which Rochard believes could be a factor in the push for a more inclusive crypto reserve.
According to Rochard, Trump’s campaign promised to ban CBDCs and create a Bitcoin-only reserve, and he argues that Ripple’s actions undermine these objectives.
Ripple CEO Defends a Diversified Reserve
In response, Brad Garlinghouse, CEO of Ripple, defended the idea of a diversified digital assets reserve, stating that Ripple’s involvement with policymakers aligns with the administration’s goal of supporting American companies and innovation. Garlinghouse suggests that a crypto reserve should not be limited to Bitcoin but could also include other assets like XRP.
Industry Insights and Speculations
Industry figures like Scott Melker, host of The Wolf of All Streets Podcast, have speculated that the U.S. government might create a strategic reserve that includes both Bitcoin and XRP. While this remains speculative, it reflects ongoing discussions within the industry. Additionally, Ripple’s financial support, including a $5 million donation to Trump’s inauguration, has led some to question whether Ripple’s lobbying efforts have influenced this potential policy direction.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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