What is a strategic reserve?

Strategic reserves refer to the significant assets held by a country to maintain economic stability and address future challenges, including gold, foreign exchange, and other strategic resources. These reserves play a critical role in international trade and financial stability. Including the following points:

• Economic stability: Strategic reserves can provide financial support during economic instability, maintaining the country’s financial stability.

• International Trade: Used for international trade and investment to ensure a country’s competitiveness in the global market.

• Risk management: As a risk management tool, help countries cope with financial crises and market fluctuations.

What is XRP?

XRP is created by the American cryptocurrency company Ripple. As of the deadline, according to CoinMarketCap data, it is the fourth largest cryptocurrency in the world, with a market capitalization of approximately $120 billion and each token valued at around $2.17.

(Source: CoinMarketCap)

Ripple regards XRP as a faster and lower-cost global payment solution and has been actively lobbying the U.S. government to support the cryptocurrency industry. The company previously donated $45 million to a political action committee (PAC) in an attempt to influence election policies. In the past, Ripple engaged in a years-long legal battle with the U.S. Securities and Exchange Commission (SEC) over whether XRP should be classified as an unregistered security. Recently, Ripple CEO Brad Garlinghouse had dinner with Donald Trump and publicly expressed his support for Trump’s initiative to promote government digital asset reserves.

Include cryptocurrencies in the strategic reserves of the United States

On March 2, 2025, U.S. President Donald Trump announced through his social media platform, Truth Social, that cryptocurrencies would be included in the United States’ strategic reserves. The assets listed include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA). Following the announcement, the prices of these cryptocurrencies all experienced double-digit growth.

Trump said that after the Canadian currency was suppressed by the Biden administration for many years, he will use digital asset executive orders to instruct the President’s working group to promote a strategic reserve of cryptocurrencies, enhance this key industry, ensure that the United States becomes the world’s crypto capital, and oppose government control of the financial system. He does not support the issuance of digital dollars by the Federal Reserve and tends to support liberal cryptocurrencies. After cryptocurrencies become strategic reserve assets of the United States, it is expected to enhance the legitimacy and credibility of cryptocurrencies, but will also give rise to new legal and regulatory issues.

Sign executive orders

On March 6, 2025, U.S. President Trump signed an executive order officially establishing the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile, ensuring not only America’s leading position in government digital asset management but also demonstrating a significant shift in the country’s global cryptocurrency strategy, fulfilling the commitment to make America the world’s cryptocurrency capital and positioning itself as a global leader in cryptocurrencies.

(Source: The WHITE HOUSE)

Why do we need XRP reserves?

Peter Schiff, a well-known Bitcoin antagonist and founder of precious metals trader SchiffGold, expressed in a post that he can understand the reasons for establishing a Bitcoin reserve. Although he disagrees, he can understand. He said: We already have gold reserves, and Bitcoin is digital gold, superior to traditional gold, so let’s also create a Bitcoin reserve.

(Source:@PeterSchiff)

Cryptocurrency summit market is looking forward to

The market had high hopes for the White House’s first cryptocurrency summit, expecting the Trump administration to propose significant policies for Bitcoin and major altcoins, even announcing the establishment of a national-level encryption reserve. However, the summit results fell short of expectations, only promising to introduce a stablecoin regulatory framework by August and indicating that future regulations will be more flexible.

The summit, hosted by the AI and cryptocurrency czar David Sacks of the Trump administration, was originally seen as a significant signal of the U.S. government’s open attitude towards the cryptocurrency industry. Following the summit, Sacks clarified that when Trump mentioned the five major coins BTC, ETH, XRP, SOL, and ADA on social media, it was just an example and did not mean that the government promised to establish a strategic reserve including these coins. This disappointed the market, leading to a further decline in altcoins such as XRP, Cardano (ADA), and Solana (SOL), while Bitcoin remained relatively resilient. Although the Trump administration’s cryptocurrency policy has attracted attention, the specific plans have not yet materialized into actionable policies, and investors remain cautious about the future development.

(Source: Google)

Summary

With the changing global economic landscape, the potential role of cryptocurrencies in national strategic reserves is gradually receiving attention. XRP, due to its efficient cross-border payment functionality and stable market performance, has become the focus in this field. Strategic reserves are important assets for countries to maintain economic stability and address future challenges, including gold, foreign exchange, and other strategic resources. The addition of cryptocurrencies may bring new vitality to traditional fields. The cryptocurrency policy of the Trump administration is still in its early stages, and the future development remains uncertain. Investors maintain a cautious optimism about the long-term prospects of cryptocurrencies, while also paying attention to the strategic layouts and regulatory dynamics of cryptocurrencies in other countries worldwide.