Former US President Donald Trump Has Outlined His Plans for a Crypto Reserve Featuring Bitcoin, Ethereum, XRP, Solana, and Cardano

US President Donald Trump has shown his support for a crypto reserve that would feature Bitcoin, Ethereum, XRP, Solana, and Cardano. However, while the market has responded positively

The crypto community is buzzing about a recent announcement from US President Donald Trump on Truth Social. In a post that has since gone viral, Trump showed his support for a crypto reserve that would feature Bitcoin, Ethereum, XRP, Solana, and Cardano.

While the market responded positively to the news, some members of the crypto community aren't wholly convinced. More on that later.

Announcing that he would be making sure the U.S. is the Crypto Capital of the World, Trump said that his administration would be focused on elevating this critical industry after years of corrupt attacks by the Biden administration.

"This is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA," he added.

The former president previously floated the idea of a crypto reserve during his speech at Bitcoin 2024, ahead of the election.

"If I am elected, it will be the policy of my Administration — the United States of America — to keep 100% of all the Bitcoin the government currently holds or acquires into the future. We will keep a hundred percent," Trump said at the time.

Following his announcement, XRP, SOL, and ADA quickly jumped 30%, 20%, and 60% respectively, while BTC and ETH experienced a smaller increase of around 10%.

However, amidst the palpable excitement in the markets, Trump’s proposed crypto reserve did not sit well with some Bitcoin fanboys.

Samson Mow, famously known for his prediction of Bitcoin reaching $1 million last year, expressed sadness over the administration-level shitcoinification.

"Bitcoin might be up but it’s a sad day for America if they actually shitcoin at a nation-state level. I can’t really say I’m surprised though, with Trump having launched a memecoin. Hypershitcoinization awaits," he stated on X.

Riot Platforms' vice president of research, Pierre Rochard, shared a similar sentiment regarding the reserve's altcoin inclusion.

"As altcoins inevitably demonetize and trend to zero relative to Bitcoin, the strategic reserve will naturally become Bitcoin-only. Folks, this is Economics 101," Rochard added.

Furthermore, Blockstream CEO Adam Back shared a meme that highlighted the skepticism towards Trump's crypto initiative. The meme showcased an image of Trump with the tagline: "Best I can do is a strategic shitcoin reserve."

It remains debatable whether such skepticism is justified, especially considering that in Switzerland, Bitcoin has been ruled out as a suitable reserve currency.

During a press conference on Thursday, Swiss National Bank (SNB) President Martin Schlegel rejected the possibility of holding Bitcoin as part of the country's central bank reserves due to stability, liquidity, and security concerns.

"Third, we prefer to invest in easily marketable assets, which can be sold quickly and in large quantities if necessary. But Bitcoin does not meet this criterion. It is an illiquid asset, and the market for it is relatively small and thin," Schlegel explained.

Moreover, Schlegel pointed out the risks associated with Bitcoin's stability and the potential for hackers to exploit any software vulnerabilities.

"Second, our reserves need to be highly liquid so that they can be used quickly for monetary policy purposes if needed. We all know that software can have bugs and other weak points. In the case of a large-scale cyberattack, for example, liquidity in the Bitcoin market could quickly evaporate, and we would be left holding an asset that could no longer be sold or used."