At the Bitcoin conference in Nashville in July, Donald Trump is committed to creating a “strategic bitcoin national reserve”.
On Sunday morning March 2, this reserve also included ether (ETH), XRP, Solana (Sol) and Cardano (ADA) alongside Bitcoin (BTC).
Trump’s message on Truth Social said that his presidential working group was moving forward on the creation of the cryptography reserve in larger Scope, triggering a torrent of comments from the whole cryptographic community.
Many have complained that the reserve does not stick to Bitcoin. Others asked if the United States had token storage like XRP and Cardano. Others wondered what could have changed Trump’s mind.
Trump said he wanted to make the United States the “cryptographic world capital” and his timing seemed intended for retail merchants. “I love the genius of the announcement of a strategic reserve on Sunday, when the traditional markets are closed and Wall Street Dort. For the first time, retail investors win, “Tweeted Trump’s son Eric Trump on Sunday evening.
The prices of assets increased almost immediately, Ada benefiting in particular. However, there are many things that we do not know about the “cryptographic strategic reserve”.
Trump’s Sunday morning’s message was the first time the administration said there were five assets in the wallet. Beyond that, the details are summary. Here are some big questions.
1. Is it serious?
The United States already has more than 200,000 BTCs which it claimed by crises. Experts say that could be the basis of a national reserve without approval from the congress. But a multi-end reserve would surely force the congress to adopt legislation.
Wyoming senator Cynthia Lummis proposed legislation that would see the United States buying $ 20 billion in the first year, and 20,000 other BTCs in each of the following four years to bring the US stock to a million BTC. Lummis’ opinions on the multi-two-cell reserve which is now exposed are unknown. She planned to meet industry leaders to discuss the issue on March 11. Will it now propose different legislation?
The other subsidiary question is how the United States could pay for the extended portfolio. The crypto is listed on the stock market and has a public price. It is not clear from Trump’s message if his administration will request a new expense credit. Could the United States sell gold to buy crypto? We don’t know.
2. Why include Solana, XRP and Cardano? Will there be others?
As many on X noted, there are logical reasons to include Bitcoin in a strategic reserve. “We are talking about a reserve, and Bitcoin is the undisputed store for the digital age,” noted Hunter Horsly, the CEO of Bitwise. Bitcoin is “digital gold” and “domination” of the BTC market is still north of 60%. BTC is the first asset that any holder holds.
It is more difficult to make a simple case for other parts. For example, Cardano, with a domination of 1.1%, is best known as an environment to build decentralized applications (DAPP). He has no FNB like Bitcoin and Ether and is not accepted by Tradfi to the same extent.
The five pieces are chosen for two different reasons. BTC and ETH are completely decentralized. Solana, XRP and Cardano are made in America, and Trump can include them to promote the American cryptos industry. Trump’s announcement seemed to be leaving the possibility that the reserve could include other parts in the future.
3. Will states follow the step?
Jesse Hamilton de Coindesk recently wrote that up to 22 states plan to create their own crypto reserves, mainly in Bitcoin. Will they now consider a wider range of assets?
4. Will crypto will support him?
The reaction to Trump’s announcement through the professional crypto was lukewarm. Trump announced the Nashville reserve aimed at pleased his audience. But today, it is not clear that the cryptography industry is 100% behind its plan to cause the reserve. If the measurement obtains a decline in the congress, the administration will need support from the industry, which could be a concern for its donors. Admittedly, the Polymaket bettors are skeptical about the reserve that the reserve will take place soon.
