US President Donald Trump has proposed creating a strategic reserve of cryptocurrency, citing the potential for it to pay down the national debt. The plan was unveiled on social media Sunday and would involve investing in both lesser-known cryptocurrencies like XRP, Solana, and Cardano, as well as more established coins like Bitcoin and Ethereum.
Trump’s move is seen as a way to promote the US as the “Crypto Capital of the World,” but it has raised concerns about conflict of interest. Trump’s social media network company plans to invest $250 billion in the cryptocurrency industry, while his appointed crypto czar, David Sacks, has sold all his own cryptocurrency holdings.
Proponents of the plan argue that a strategic reserve could be worth trillions of dollars over time and help stabilize the US economy. However, critics point out that such investments might not yield the desired results and could put taxpayer dollars at risk.
The proposal is part of Trump’s broader pledge to deregulate the cryptocurrency industry. This move has been supported by libertarian-minded tech billionaires who backed his campaign. Despite these backing, the proposal is unlikely to gain traction in Congress due to concerns about government spending and potential conflicts of interest.
Source: https://edition.cnn.com/2025/03/03/politics/trump-crypto-president-strategic-reserve/index.html