The possibility of establishing a U.S. crypto strategic reserve has sparked intense discussions within the cryptocurrency community, with Ripple’s native token at the center of the controversy. Ripple has been vocal about its ambitions to position the token as a key component of such a reserve. However, opinions within the industry remain deeply divided.
Ripple CEO Brad Garlinghouse has expressed optimism about the asset’s potential inclusion , aligning the company’s goals with the current administration’s emphasis on promoting American innovations. According to Garlinghouse, incorporating assets like XRP alongside Bitcoin would be consistent with efforts to support U.S.-based companies and technologies.
Industry Pushback and Criticism
Despite Ripple’s efforts, many industry leaders are skeptical of XRP’s suitability for a U.S. crypto reserve. Ryan Selkis, founder of Messari, has been one of the most vocal critics. Selkis advocates for Bitcoin as the sole cryptocurrency fit for such a reserve, citing its decentralized nature, reliance on energy-backed mining, and dominant global position as critical factors.
He also criticized Ripple’s lobbying efforts , accusing the company of aggressively promoting the token despite concerns about its centralized distribution and the large volume of XRP held by Ripple.
Adding to the conversation, Charles Hoskinson , founder of Cardano, struck a more neutral tone. While he acknowledged Ripple’s efforts, he suggested that Bitcoin should be the primary focus for a government-backed crypto reserve. This cautious approach reflects the broader hesitation among industry leaders about moving beyond Bitcoin when considering digital assets for a strategic reserve.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Government Interest and Potential Considerations
The U.S. government has shown interest in exploring the feasibility of a digital asset reserve. A working group has been tasked with evaluating the concept. Bitcoin initially dominated early discussions, however, attention has recently shifted toward other assets, including XRP and Solana, particularly those marketed as “American-made” technologies.
Ripple’s lobbying efforts have drawn both support and criticism. Advocates argue that including a diverse range of digital assets could strengthen the foundation of a U.S. crypto reserve. However, critics warn that prioritizing assets like XRP could undermine the initiative’s credibility. Riot Platforms and other Bitcoin-focused advocates have expressed concerns that Ripple’s push for inclusion may detract from Bitcoin’s proven stability and decentralization.
A central point of contention is Ripple’s substantial control over its native token, XRP. The company reportedly holds above 50% of the total token supply, raising questions about its decentralization and suitability for a government reserve. Critics argue that this level of control creates potential conflicts of interest and undermines the decentralization principles often central to cryptocurrencies.
The debate highlights broader divisions within the crypto industry about the future of digital asset adoption in government frameworks. While Bitcoin remains the frontrunner due to its established track record and global recognition, Ripple’s campaign to include XRP has brought alternative perspectives into the conversation.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter , Facebook , Telegram , and Google News
