President Donald Trump announced the creation of a “Crypto Strategic Reserve” which will include five digital assets.
This announcement is based on various promises made by Trump’s campaign, in particular by establishing the United States as “cryptographic capital of the world” and strengthening the country’s financial infrastructure.
The suggested crypto included Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (Sol) and Cardano (ADA).
Andrew O’Neill, director general of digital assets at S&P Global Ratings, provided information about Trump’s last announcement.
O’Neill noted that Bitcoin stands out as an alternative monetary asset and can be a coverage against the long -term recess and the support of the sustainability of the debt. He said:
“In the context of the investments of a sovereign, the story to allocate a part to the BTC is similar to gold, to covered against the discharge of long -term currency and the support of the sustainability of debt”, ”
Adoption of non-bit
The other cryptocurrencies of the proposed reserve serve different objectives. Ethereum and Solana focus on technological adoption, allowing decentralized applications and intelligent contract features. Meanwhile, Cardano and XRP are considered to be more speculative investments due to their relatively lower adoption rates.
O’Neill stressed that investment in these assets differs considerably from Bitcoin, because investments in technological business are less common for sovereign entities.
“The investment in these assets differs considerably from the BTC and the venture capital investment is less common for the sovereigns,” said O’Neill. “Before the elections, Senator Lummis proposed a Bitcoin strategic reserve with details, including a long period of detention of at least 20 years and the financing of the re -evaluation of existing gold certificates of the Fed.”
The Lummis proposal considered the US Treasury to acquire a million bitcoins over five years, with a period of detention mandated of at least 20 years, aimed at strengthening the results of America and ensuring transparent management of Bitcoin holders.
His proposal also suggested funding Bitcoin purchases thanks to methods such as the reassessment of gold certificates from the Federal Reserve.
Lack of details
Unlike the structured plan of Lummis, Trump’s proposal has not yet provided details on the size, the calendar or the management of the cryptographic strategic reserve.
O’Neill stressed that without these details, it remains difficult to assess the potential impact and the strategy for implementing the initiative.
“Yesterday’s proposal lacks details on size, the calendar and if it will be managed by the federal reserve or another new or existing entity,” said O’Neill.
