Donald Trump Announces Creation of US National Cryptocurrency Reserve

Last week, US President Donald Trump clarified the new government’s strategy for its involvement in cryptocurrency operations. While Trump had previously insisted on the state simply keeping a certain amount of digital assets, he has now announced the creation of a full-fledged reserve that will include several cryptocurrencies in addition to Bitcoin.

Image source: Unsplash, André François McKenzie

With his decree, Donald Trump, as CNBC explains, instructed a specially created working group to begin creating the conditions for the emergence of a strategic cryptocurrency reserve, which would include XRP, Solana and Cardano. “Obviously, the Reserve will be based on Bitcoin and Ethereum, as well as other valuable cryptocurrencies,” Trump said from the pages of his social network Truth Social, later admitting his sympathies for Bitcoin and Ethereum. These statements caused the XRP rate to increase by 33%, the Solana-related token rose in price by 25%, and the Cardano coin increased in price by more than 60%. Bitcoin strengthened in price by 10%, although it had updated its three-month minimum on Friday. Ethereum managed to grow in price by 13%.

This Friday, Donald Trump is scheduled to attend a White House summit on cryptocurrencies. Apparently, the event will reveal the current US government’s future strategy in the area of ​​cryptocurrency circulation and state participation in this area. Until now, it was believed that under Trump, the country’s authorities would simply accumulate legally confiscated digital assets without participating in their targeted purchase. If we draw an analogy with the classic state asset reservation system, the US authorities may prescribe the conditions under which they will purchase cryptocurrency to replenish reserves.

Not all investors are in favor of the idea of ​​the US government participating in the formation of a national cryptocurrency reserve. The cyclical nature of political processes in the US can manifest itself not only every four years, but even every two years due to the renewal of the parliament. If the next government is skeptical about maintaining a cryptocurrency reserve or simply needs money to replenish the budget, digital assets can simply be sold off in a few years. In general, the idea of ​​government control over a decentralized digital currency contradicts the goals of its creation, so not everyone likes Trump’s new initiatives.