U.S. Government's Crypto Reserve: Bitcoin Dominates, XRP and ADA Spark Debate
1min read The potential adoption of cryptocurrencies by the U.S. government has sparked widespread interest and speculation. Farcaster co-founder Dan Romero recently shared insights into the possible roles of XRP and ADA in a U.S. crypto reserve.
Romero predicted that the Trump administration would retain seized assets rather than making new crypto purchases, suggesting that the government is unlikely to invest in cryptocurrencies. However, he also highlighted the possibility of including XRP and ADA in the crypto reserves through in-kind tax payments or quasi-donations, indicating potential collaboration between the government and Ripple and Cardano.
Bitcoin is expected to dominate the U.S. crypto reserves, possibly comprising about 80% of the government's crypto holdings. This is due to Bitcoin's market dominance, widespread adoption, and global acceptance. Cameron Winklevoss, co-founder of Gemini, echoed this sentiment, stating that Bitcoin is the only asset that meets the bar for a store of value reserve asset.
The inclusion of XRP and ADA in the U.S. crypto reserve has been met with skepticism. Taylor Winklevoss, co-founder of Gemini, disagreed with the choice of XRP, Solana, and Cardano, arguing that only Bitcoin meets the criteria for a strategic reserve. Economist Peter Schiff also questioned the government's decision to include these cryptocurrencies, initially endorsing the Bitcoin reserve before retracting his support.
Despite the skepticism, proponents of XRP and ADA celebrate the move. Charles Hoskinson, founder of Cardano, praised the president's decision, stating that XRP is a global standard with a strong community. Ripple CEO Brad Garlinghouse hailed the development as a major signal for the industry's progress, noting that the President of the United States recognizes the existence of a multichain world.
