US Crypto Reserve: Farcaster Founder Predicts Role of XRP and ADA As Strategic Asset

Highlights

Farcaster founder predicts the possible management of the US crypto reserve.
Dan Romero says that the government will use only the seized assets.
Romero says that XRP and ADA will be used through in-kind tax payments or quasi-donations.

US President Donald Trump’s decision to adopt Bitcoin, XRP, Solana (SOL), and Cardano (ADA) has sparked widespread optimism. However, the community remains ambiguous on the potential composition and management of the US crypto reserve. Farcaster co-founder Dan Romero’s recent predictions offer a glimpse into the utilization of crypto reserves and the potential roles of XRP and ADA.

US Crypto Reserve Management: Key Insights

Amid escalating ambiguity regarding the United States’ cryptocurrency reserve, Dan Romero, co-founder of Farcaster, has offered predictions regarding the government’s prospective plans.

In a recent X post, the Farcaster founder stated that Donald Trump’s government would retain seized assets rather than making new crypto purchases. This suggests that the administration is unlikely to invest in cryptocurrencies, despite its ambitious reserve plans.

Unveiling the Future of US Crypto Reserve: Roles of Bitcoin, XRP & ADA

According to the Farcaster founder’s predictions, Bitcoin will dominate the US crypto reserves. Possibly, Bitcoin will comprise about 80% of the government’s crypto holdings. This may be because of Bitcoin’s market dominance, widespread adoption, and global acceptance.

Notably, Trump’s crypto reserve announcement sparked widespread enthusiasm, particularly regarding Bitcoin’s potential role in the reserve. For instance, Gemini co-founder Cameron Winklevoss stated, “Bitcoin is the only asset that meets the bar for a store of value reserve asset.”

Meanwhile, the Farcaster founder highlighted the possibility of the Trump government including XRP and ADA in the crypto reserves through in-kind tax payments or quasi-donations. This implies Ripple and Cardano’s possible ways of collaborating with the government.

Inclusion of XRP & ADA Met with Skepticism

Despite the optimism surrounding the government’s Bitcoin reserve strategy, the inclusion of XRP and ADA has been met with skepticism. Gemini co-founder Taylor Winklevoss shared his disagreement with Trump’s choice of XRP, Solana, and Cardano. He stated,

I have nothing against XRP, SOL, or ADA but I do not think they are suitable for a Strategic Reserve. Only one digital asset in the world right now meets the bar and that digital asset is bitcoin.

Similarly, economist Peter Schiff questioned the government’s decision to include XRP, SOL, and ADA in the US crypto reserve. Though he initially seemed to endorse the Bitcoin reserve, later he retracted his support, accusing BTC proponents of disseminating misinformation.

XRP Proponents Celebrate Trump’s US Crypto Reserve Strategy

Though a portion of the community is against the XRP reserve, proponents celebrate the move. “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,” stated Cardano founder Charles Hoskinson.

Ripple CEO Brad Garlinghouse hailed the development a major signal for the industry’s progress. In response to Trump’s announcement, Garlinghouse stated, “Happy to see that the President of the United States recognizes that we live in a multichain world.”

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Nynu V Jamal

Nynu V Jamal is a Senior Journalist at CoinGape. She boasts more than 3 years of experience in content writing, with expertise in crypto and blockchain. She has contributed to platforms like CoinEdition and CryptoTale, demonstrating her proficiency in navigating the dynamic crypto landscape. Beyond her journalistic pursuits, Nynu is a literary enthusiast, having served as an Assistant Professor of English Language and Literature. She is a Master's degree holder in English Literature and a UGC NET qualifier. Her academic background has enabled her to publish research papers on literature, while also nurturing her creative side as a published poet. Her creative side extends to music, crafts, and art, which she actively explores. Her unique blend of analytical and creative skills allows her to craft engaging stories that captivate audiences. Stay updated with Nynu on LinkedIn

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