Brian Armstrong of Coinbase thinks the U.S. should have a Crypto Reserve, yet emphasizes that Bitcoin should be its only asset. valuable initiative His remark was made after David Sacks unveiled President Donald Trump’s plan for a Crypto Reserve featuring Bitcoin and other cryptocurrencies like Ethereum, XRP, Solana, and Cardano.
Armstrong favors a Bitcoin-centric strategy for its straightforward nature and his faith in the digital currency's enduring value.
Armstrong argues that investing in Bitcoin alone 'might be the optimal choice' due to its ease and its 'clear narrative as a successor to gold.'
Bitcoin Still Leads Market
Commonly dubbed 'digital gold,' Bitcoin is perceived as a reliable value-preserving asset. It has won a substantial following among investors as a solid long-term choice, with some experts forecasting it might take over gold's role within a decade.
Armstrong also floated the idea of creating a 'market cap-weighted index of crypto assets' for those interested in diversification, suggesting it would offer impartial exposure to the broader crypto market. Yet, he reiterated that a Bitcoin-only approach remains the most straightforward.
On March 2, Trump mentioned on Truth Social that his executive order prompted the Presidential Working Group to include XRP, SOL, and ADA in the U.S. Crypto Reserve.
Trump's order, signed during his first week in office, was part of a move to evaluate a digital assets stockpile's strategic creation. However, it did not specify any cryptocurrencies at that time.
In a statement on Sunday, the President clarified that the strategic reserve would also feature Bitcoin, Ethereum, and other significant cryptocurrencies, which he described as 'central' to the plan.
David Sacks, Trump's appointee overseeing AI and crypto, indicated that Trump's strategic crypto reserve aligns with the January directive, aiming to establish the U.S. as a leader in blockchain and cryptocurrency.
Sacks mentioned that further details about the proposal would be revealed at the premier White House crypto summit set for March 7.
Trump's inclusion of XRP and ADA in his crypto reserve speech triggered debate among crypto enthusiasts, particularly because he initially left out BTC and ETH.
Skeptics argue that the choice of XRP and ADA, alongside Solana, emphasizes cryptocurrencies backed by corporations, which some fear go against decentralization principles.
XRP, tied to Ripple Labs, is embroiled in legal wranglings with the SEC over its classification as a security, raising doubts about its suitability for a government reserve.
Similarly, ADA's inclusion has faced criticism due to Cardano's ongoing challenges with adoption and network engagement. The instability of both XRP and ADA has also stirred apprehension regarding their viability as enduring assets.
Nonetheless, with the SEC actively seeking to resolve disputes with numerous crypto firms lately, optimism persists about a possible settlement in the SEC vs. Ripple case.
Some speculate lobbying activities might influence the selection of these cryptocurrencies, with critics highlighting Ripple Labs' lobbying for crypto-friendly lawmakers potentially playing a part in XRP’s inclusion.
Fierce Bitcoin critic and gold advocate Peter Schiff acknowledges the 'Bitcoin as digital gold' theory despite personally opposing it. However, he is wholly against the concept of an XRP reserve.
Schiff remarked, 'We have a gold reserve. Bitcoin stands as digital gold, arguably better than analog gold. So, a Bitcoin reserve is a no-brainer, but why would an XRP reserve make sense? No logic there.'
Following Trump's statements, both XRP and ADA witnessed substantial price surges. CoinGecko data shows XRP leapt over 30% to almost $3 shortly afterwards, while ADA skyrocketed over 50%.
SOL experienced a 25% rise, whereas BTC and ETH each recorded a 10% increase.
Nicholas Say, born in Ann Arbor, Michigan, has extensively traveled and lived in Uruguay before settling in the Far East. His works, focusing on realistic development and futuristic tech, can be found widely online.
