Cardano founder Charles Hoskinson educates crypto skeptic Peter Schiff on why President Donald Trump ordered the creation of a national XRP strategic reserve.
In a startling development, President Trump announced the creation of a national digital asset strategic reserve featuring BTC, ETH, and other top crypto assets like XRP, SOL, and ADA.
In a Truth Social post, the U.S. President emphasized that the digital asset reserve is crucial to elevate the crypto industry, which suffered “corrupt attacks” under the Biden administration.
This announcement aligns with Trump’s Executive Order issued in January, aiming to position the U.S. as the world’s Crypto Capital.
Peter Schiff Questions Rationale Behind XRP Reserve
As expected, the directive stirred a mixed reaction, with Peter Schiff questioning the rationale behind establishing an XRP reserve.
Notably, Schiff explained the logic behind a strategic Bitcoin reserve, drawing a parallel between the premier cryptocurrency and gold. He mentioned that Bitcoin is often referred to as digital gold and added that the U.S. already has a gold reserve.
Hence, he understands why the U.S. would establish a national reserve for Bitcoin, which he suggests is better than the precious yellow metal. However, he struggles to understand the rationale behind President Trump’s order to create an XRP reserve.
Hoskinson Schools Schiff
Reacting, Cardano founder Charles Hoskinson highlighted certain attributes of XRP to justify why Trump wants it included in the national digital asset reserve. Notably, Hoskinson mentioned that XRP has great technology, longevity, and strong community support.
According to him, XRP has survived many harsh market cycles over a decade, positioning itself as a global standard. He praised the community behind XRP, noting that it is one of the strongest in crypto.
“I think the president made the right decision [ordering the establishment of a national XRP reserve],” Hoskinson remarked.
Because XRP is great technology, a global standard, survived for a decade through many harsh cycles, and has one of the strongest communities. I think the president made the right decision
— Charles Hoskinson (@IOHK_Charles) March 2, 2025
XRP Community Figure Reacts
Furthermore, Panos Mekras, co-founder of XRPL-based project Anodos Finance, provided other reasons that potentially influenced Trump’s decision.
According to Mekras, XRP has better features than Bitcoin, noting that it is the best store of value and medium of exchange. He claimed that XRP’s underlying technology, XRP Ledger (XRPL), had the first decentralized exchange since its early days, allowing users to trade their assets directly.
Additionally, Mekras identified XRPL as the first blockchain to have tokenized gold. Furthermore, he noted that XRP is deflationary, with a finite supply, which prevents the creation of more tokens other than the pre-mined 100 billion XRP coins.
In the meantime, the Presidential Working Group has not disclosed details of the XRP reserve, including the amount the U.S. plans to acquire and the duration the coins will be held.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
