Key Points
- Ripple’s CEO, Brad Garlinghouse, supports the idea of a multichain digital asset reserve for the US.
- Garlinghouse opposes the “winner-takes-all” approach and advocates for a diversified digital asset reserve.
Brad Garlinghouse, Ripple’s CEO, has recently shared his thoughts on the discussions about a national digital asset reserve in the US. Initially, the focus was solely on Bitcoin, but as the initiative gains traction, Garlinghouse has expressed the need for a multichain approach that includes a range of cryptocurrencies, including XRP.
Garlinghouse believes that the cryptocurrency landscape shouldn’t be a “winner-takes-all” situation. He encourages industry members to collaborate instead of engaging in divisive competition. He also shared that he personally holds XRP, Bitcoin, and Ethereum, which informs his belief that future digital asset reserves should be diversified, not favoring a single token.
Maximalism: A Hindrance to Growth?
Garlinghouse sees maximalism, the belief that one cryptocurrency is superior to all others, as a constant threat to the industry’s growth. However, he has observed a gradual decrease in this ideology. He stated, “If a government digital asset reserve is created – I believe it should be representative of the industry, not just one token.”
This perspective aligns with many experts who argue that diversifying the reserve with various cryptocurrencies could offer better risk management and potentially higher returns. This mirrors how traditional reserves often include a mix of assets.
However, critics, especially those from Bitcoin-focused communities, remain doubtful. Pierre Rochard, Vice President of Riot Platforms, and Ryan Selkis, CEO of Messari, argue that Bitcoin’s decentralized and limited supply makes it the most suitable reserve currency. They believe that including other altcoins would dilute the fundamental advantages that a Bitcoin-centric reserve provides.
States Considering Bitcoin Reserves
The debate intensified after President Trump signed an executive order on January 23, 2025. The order created a working group to draft new crypto regulations and explore a potential national cryptocurrency stockpile. Although the order didn’t explicitly mandate the creation of a reserve, it has sparked discussions on how the government might structure such an initiative.
Currently, several states in the US are contemplating proposals to establish strategic Bitcoin reserves. Nine states are currently considering such proposals. Senator Cynthia Lummis has proposed a federal Bitcoin reserve plan under which the US Treasury would acquire 200,000 Bitcoin annually for five years until the reserve reaches one million tokens.
In other news, XRP has shown a significant recovery from Monday’s price slump. After dipping to $2.80, the token has rebounded to $3.10, reflecting a 12% gain in the past day. Similarly, Bitcoin has also seen a 3.8% surge in its value, currently trading around $102,700.
