The cryptocurrency community is in disagreement over the idea of a “national cryptocurrency reserve,” with leading Bitcoin enthusiasts claiming that Ripple is now posing a threat to a dedicated U.S. BTC strategic stockpile.
In a recent blog post, Jack Mallers of Strike announced that the company had diverted millions of dollars away from Bitcoin.
“Ripple is jeopardizing American prosperity, freedom, and Bitcoin. Ripple is actively working to prevent the establishment of a Bitcoin Strategic Reserve in the U.S., all while promoting their centralized, corporate-controlled token. This is unacceptable.”
For context, President Donald Trump issued an executive order related to cryptocurrencies to establish a national digital asset reserve and promote digital financial progress in the United States. This could potentially be put into effect within 180 days once the designated working group finalizes the legislative structure.
This update has brought to light the initial speculations about the potential formation of a ‘Made in USA’ crypto reserve, which may include XRP, HBAR, SOL, ADA, among others. However, it is evident that there are conflicting views on this matter among key figures in the industry, as seen in the ongoing online debates.
Ripple Facing Opposition
It is notable that Ripple, Kraken, and Circle have been competing for a place in the yet-to-be-established Trump Crypto Council – a crucial group for coordinating crypto policies. However, the criticisms extend further than just this competition.
One individual argued that unlike gold and Bitcoin, which have limited supplies and are not controlled by any single entity, XRP’s circulation is mainly governed by Ripple, which does not align with the requirements for a reserve asset.
“XRP falls short of meeting these standards due to its close ties with Ripple and the significant control the company exerts over its circulation. Unlike Bitcoin and Gold, XRP has a CEO and a marketing team advocating for its interests.”
Ryan Selkis, the Co-founder of Messari, criticized Ripple’s leadership for backing Democratic senators in the previous election, despite facing regulatory actions under a Democratic-led SEC.
“The donation made by FairShake PAC to Democratic senators who oppose us is linked to Brad Garlinghouse and Chris Lehane, individuals that Brian Armstrong refuses to remove from his board.”
In a notable move, Chris Larsen, a co-founder of Ripple, contributed over $10 million to Kamala Harris’s campaign. However, no official response from Ripple’s executives has been issued regarding these allegations.
Contrary to the call for an exclusive Strategic Bitcoin Reserve, Peter Schiff, a longstanding Bitcoin skeptic, argued that such a move would not address the U.S. fiscal deficit. According to him,
“The government’s purchase of Bitcoin using taxpayer funds benefits only those who sell their tokens to the government, to the detriment of everyone else. This approach, driven by inflation, will reduce living standards.”
At present, the odds of the U.S. possessing an XRP reserve by 2025, as per Polymarket, stand at just 21%, whereas the chances for a Strategic Bitcoin Reserve are at 60%. Interestingly, on the XRP/BTC chart, XRP has outperformed Bitcoin by +330% since last November.
Lastly, it is essential to note that this pair has reached its peak for the 2021 cycle, a development that could potentially trigger a reversal or a significant market shift.