Ripple Labs CEO Brad Garlinghouse has supported the creation of a U.S. government digital asset reserve that includes a variety of cryptocurrencies instead of just Bitcoin (BTC) or XRP. Revealing his opinion, Garlinghouse took to Twitter (previously):
“I own XRP, BTC, and ETH, alongside a few others—we’re in a multichain world, and I’ve lobbied for a level-playing field and not one token vs. another. If we have a government digital asset reserve, I believe it should be representative of the industry, not just one token (BTC, XRP, etc.)”.
His remarks follow the ongoing chatter regarding a possible national digital asset reserve for the United States, which was endorsed by President Donald Trump during his last campaign.
Trump Administration Considers a National Digital Asset Stockpile
President Trump proposed that his administration is thinking about the establishment of a national digital asset reserve. This plan is partly in line with his campaign rhetoric calling for the U.S. to create a strategic stockpile of digital currencies. Both these factors lead to a broader expectation in the crypto market that Bitcoin, as the number one coin by market cap and institutional asset, would eclipse such a reserve.
While this plan may be feasible at some point, it is unlikely this initiative will be pursued by Trump at all within the first 100 days of his administration. Based on the decentralized betting platform Polymarket, the odds of the project getting approved during this period are simply 17% so far.
Garlinghouse Dismisses Bitcoin Maximalism
Although Bitcoin continues to be the leading contender in conversations over a possible US crypto reserve, Garlinghouse has expressed his disagreement with maximalist rhetoric that elevates Bitcoin as the only option for such a move.
“Maximalism continues to be the archenemy of crypto evolution, and I am pleased to see fewer and fewer people subscribe to this type of outdated and misinformed way of thinking,”
Garlinghouse said.
The company Garlinghouse heads, Ripple, has for some time now been an advocate of using XRP to solve cross-border payments and remittances, which emphasizes interoperability and inclusivity for all in the blockchain sector.
XRP’s Recent Performance and Market Reactions
These developments have been closely watched by the wider cryptocurrency market. Bitcoin recently surpassed $109,000, inspired in part by hopes for crypto-friendly policies from the new administration. XRP, Ripple’s native cryptocurrency, on the other hand, has shown volatility. XRP briefly rose to $3.09 before a sudden drop of nearly 10 percent to $2.65, according to CoinDesk data.
The drop in price highlights the difficulties that non-Bitcoin various crypto assets have had in reaching wider acceptance and status in conventional financial systems.
Why We Should Make the Case for a Multichain Reserve
Garlinghouse’s advocacy for a diversified reserve underscores the importance of transcending single-token dominance and acknowledging the multichain architecture of the blockchain space. This could give a more diversified reserve covering various cryptocurrencies, such as Ethereum (ETH), XRP, and others, sounding more resistive, versatile, and adaptable in a fast-changing financial environment.
The proposal reflects a growing sentiment in the crypto community that governments and institutions should be more inclusive towards digital assets. This would further enhance the U.S.’s standing in the global crypto ecosystem while embodying the decentralized spirit upon which blockchain technology is built.
Will the U.S. Choose Bitcoin Exclusivity or Embrace a Multichain Approach?
If the Trump administration uses the U.S. as a crypto reserve, others may follow suit. The outcome will undoubtedly have far-reaching implications for the future of both cryptocurrency adoption and regulation, as it will potentially establish either a Bitcoin-centric reserve or a more diverse pool of digital assets that is determined by a variety of factors, including market conditions and corporate interests.
Garlinghouse’s remarks are a reminder that the success of blockchain technology is in cooperation and pluralism, not in competition and exclusivity. As he put it,
“We live in a multichain world,”
and a strategy moving forward should parallel this reality.
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Frequently Asked Questions
1. Dalio also sees the idea of a U.S. crypto reserve as “extremely exciting,” but what does Brad Garlinghouse think of it?
He advocates for a multichain reserve rather than just Bitcoin or XRP.
2. Why has Garlinghouse taken issue with Bitcoin maximalism?
He thinks that maximalism slows progress and is a proponent of including diversity in any digital asset strategy.
3. Which cryptocurrencies does Garlinghouse own?
He holds XRP, Bitcoin, Ethereum, and Atlantic cryptocurrency.
4. How soon can we expect a crypto reserve grant by Trump?
Polymarket predicts a 17% shot in the first 100 days.
