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Key Takeaways
- Hoskinson said XRP deserves its place in the US crypto reserve.
- XRP is praised for its efficient blockchain and strong market presence, making it suitable for financial transactions.
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Cardano co-founder Charles Hoskinson backs President Trump’s decision to include XRP in the US crypto reserve. He believes XRP’s utility justifies its role in the reserve.
Hoskinson’s comment came in response to Peter Schiff’s skepticism about why the government would need an XRP reserve. Trump on Sunday announced that the US reserve would include Bitcoin, Ethereum, XRP, Solana, Cardano, and “other valuable crypto assets.”
A long-term Bitcoin critic, Schiff said he did not agree with the concept of a Bitcoin reserve, but admitted to “getting the rationale” for it.
As for XRP, the economist strongly questioned the rationale for including the digital asset in any crypto reserve.
“We have a gold reserve. Bitcoin is digital gold, which is better than analog gold. So let’s create a Bitcoin reserve too. But what’s the rationale for an XRP reserve? Why the hell would we need that?” he stated.
In defense of XRP, Hoskinson called it a global standard and praised its resilience and strong community. He believes all of these key reasons explain why XRP deserves a place in the US crypto reserve.
“Because XRP is great technology, a global standard, survived for a decade through many harsh cycles, and has one of the strongest communities. I think the president made the right decision,” Hoskinson commented.
Why not Fartcoin?
In a follow-up statement, Schiff doubled down on his skepticism about XRP’s inclusion in the US crypto reserve. He challenged what makes XRP so special that it deserves to be part of the nation’s strategic holdings.
“There are a lot of valuable assets that the U.S. government doesn’t hold in reserve. What’s so special about XRP,” Schiff added.
He also challenged the logic behind the decision to add assets like ETH, SOL, and ADA to the initiative. He asked why Fartcoin wasn’t included if XRP and ADA made the cut.
“Do we also need a reserve of ETH, SOL, or ADA? Do we need reserves of those? Why not include Fartcoin? Also, about an NVDA reserve? or APPL? Are those valuable companies?” Schiff stated.
Schiff was not the only person that questioned the inclusion of XRP in Trump’s US crypto reserve. The decision indeed sparked a widespread debate among crypto community members.
Many industry figures don’t favor the idea of an altcoin-based reserve. SOL, XRP, and ADA are heavily backed by Trump, according to Alex Xu, a Mint Ventures research partner. This could undermine the Bitcoin strategic reserve and reduce the likelihood that a federal Bitcoin reserve bill will pass.
Coinbase CEO Brian Armstrong voiced support for a Bitcoin-only reserve. He views Bitcoin as the simplest and most transparent option, akin to a successor to gold, although he acknowledges that a market cap-weighted index could potentially add variety.
According to David Sacks, the White House AI and crypto czar, more details about the proposed crypto reserve will be unveiled at the first White House Crypto Summit scheduled for March 7.
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This article first appeared at Crypto Briefing
