- The U.S. government announced the creation of a Strategic Crypto Reserve.
- The reserve includes Bitcoin, XRP, ETH, SOL, and ADA, surprising many.
- Peter Schiff criticized the inclusion of XRP in the national reserve.
The U.S. government’s decision to establish a Strategic Crypto Reserve has sparked debate in the financial sector. President Donald Trump announced the initiative would include Bitcoin and altcoins like XRP, ETH, SOL, and ADA. The decision led to a market rally, but economist Peter Schiff criticized the inclusion of XRP in the reserve.
U.S. Crypto Reserve Plan
The Strategic U.S. Crypto Reserve aims to strengthen the country’s position in digital assets. Initially planned to include only Bitcoin, the reserve now incorporates major altcoins, broadening its scope. Trump’s announcement led to Bitcoin surging over 10%, with XRP rising 40% and other altcoins also posting gains.
The decision to include multiple digital assets surprised many in the crypto community. While Bitcoin’s status as digital gold is widely recognized, the rationale behind adding altcoins sparked debate. The move was seen as an effort to diversify national holdings and support blockchain adoption.
Critics argue that including altcoins adds unnecessary risk to the reserve. Others believe it legitimizes the role of cryptocurrencies in global finance. The initiative’s long-term impact remains uncertain as discussions continue.
Peter Schiff’s Criticism of XRP
Peter Schiff acknowledged the reasoning behind a Bitcoin reserve but dismissed the need for XRP. He argued that Bitcoin, like gold, holds value as a scarce asset, while XRP serves a different purpose. He questioned why the U.S. would need an XRP reserve when its primary function is cross-border transactions.
Schiff’s views align with his long-standing skepticism toward cryptocurrencies. He has consistently criticized Bitcoin but recognizes its digital gold narrative. However, he remains firm in his belief that altcoins, including XRP, do not belong in a national reserve.
His remarks triggered strong reactions from the crypto community. Many believe XRP’s role in instant and low-cost transactions justifies its inclusion. Others accused Schiff of ignoring its practical applications in global finance.
Community Response to Schiff’s Comments
Crypto traders and industry experts resisted Peter Schiff’s critique. They argued that XRP plays a crucial role in financial institutions for cross-border settlements. Some highlighted that gold and Bitcoin lack the efficiency that XRP provides in transaction speed and cost.
Jason Higgins, a crypto trader, stated that Schiff was being intellectually dishonest in dismissing XRP’s use case. He pointed out that financial institutions rely on XRP for efficient payment solutions. His comments echoed a broader sentiment that Schiff overlooked XRP’s real-world utility.
Despite the criticism, Schiff remained firm in his stance. He suggested that Trump’s announcement served as a bailout for the crypto market. He claimed that Bitcoin was on the verge of a major selloff before the policy boosted prices.