XRP’s Bid for US Crypto Reserve: A Heated Debate

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The idea of a U.S. crypto strategic reserve has stirred up the crypto world, and XRP has become a lightning rod in the debate. Ripple, the company that uses XRP, seems to be pushing hard for its inclusion. But not everyone in the industry is convinced this is a good idea.

Ripple CEO Brad Garlinghouse recently said that the company’s efforts are in line with the current administration’s focus on supporting American companies and technologies. He suggested that this approach could increase the chances of creating a reserve that includes assets like XRP, along with Bitcoin.

However, Ripple’s large amount of XRP – worth over $100 billion – leaves critics with a biased view.

Does XRP belong to the U.S. crypto reserve?

Not everyone is buying it. Ryan Selkis, founder of Messari, took a clear stance against Ripple’s ambitions. From his perspective, Bitcoin is the only cryptocurrency worthy of a strategic reserve. Its decentralized nature, energy-backed structure and global dominance make it unique. Selkis did not hold back his words, calling XRP unfit for the role and accusing Ripple of aggressive lobbying to secure its spot.

Adding another voice to the mix, Cardano founder Charles Hoskinson offered a different tone. He downplayed the XRP debate, suggesting that the focus should remain on Bitcoin for now. While this stance did not entirely dismiss XRP, it underscored the widespread hesitation about moving beyond Bitcoin for a government reserve.

Ryan, there is no reason to base XRP. We both know the strategic reserve will start as bitcoin only. Just leave it at that

— Charles Hoskinson (@IOHK_Charles) January 24, 2025

At the heart of the matter is a directive from the U.S. government. A working group has been tasked with studying the feasibility of a digital asset reserve. While early discussions revolved around Bitcoin, recent chatter suggests that assets like XRP and Solana, branded as “Made in America,” might also be considered.

Critics, including industry players like Riot Platforms, are not thrilled. Ripple’s lobbying efforts have drawn accusations of obstructing Bitcoin-focused initiatives. Many argue that prioritizing anything other than Bitcoin could complicate, not strengthen, the foundation of a U.S. crypto reserve.

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2025-01-24 14:56