On March 2, 2025, US President Donald J. Trump named the five cryptocurrencies that will be in the US Crypto Strategic Reserve.
These digital coins are Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), and Ripple’s XRP.
At the time of writing, Trump hasn’t given more info regarding the CSP’s purpose. However, some speculate it will work like the US gold reserve while others believe it will cover the national debt.
How might the Crypto Strategic Reserve work?
9/ The US has the reserve currency. We should be doing everything we can to keep our fiscal house in order in dollar terms, which means cutting the deficit and future expenditures to a sustainable path, not trying to YOLO into an asset that benefits from dollar decline.
— Austin Campbell (@CampbellJAustin) December 15, 2024
President Trump promised that the US would become the “crypto capital of the world” and promoted the idea of a strategic bitcoin reserve.
Eventually, he added four other digital assets, changing its name to the Crypto Strategic Reserve.
However, TIME says it is unclear how the president will fund the reserve, its size, and its purpose.
As mentioned, some believe it will work like America’s other strategic reserves for gold and other essentials.
Others say it could help pay off the national debt.
Many crypto enthusiasts support the plan because it may encourage more people to buy bitcoin and other digital currencies.
Consequently, their prices will increase, boosting their portfolios.
Other governments may follow America’s example and create their own reserves, raising prices further.
They also believe the Crypto Strategic Reserve may serve as a hedge against inflation.
On the other hand, skeptics like Stephen Cecchetti took to X and voiced their concerns regarding this plan.
The economist and professor at Brandeis International Business School said:
“It’s foolish to purchase risky assets with leverage in the hope of making it easier to repay your debt.”
The US may sell off the Crypto Strategic Reserve’s assets to battle inflation. However, doing so could signal other investors to sell their cryptocurrencies, too.
This domino effect could drastically reduce the value of the CSP’s remaining assets.
Ironically, some crypto experts are against the US government’s crypto plan.
They pointed out the irony of the government having significant power over a currency that was designed to be decentralized.
Others warned that scammers could take advantage of the Crypto Strategic Reserve for their schemes.