Donald Trump: Crypto reserve not only with Bitcoin, prices soar
The US President is sticking to his plan for a cryptocurrency reserve, which is to include other digital currencies in addition to Bitcoin and Ethereum.
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Donald Trump has announced which cryptocurrencies are to be included in his country's strategic reserve, giving a significant boost to the prices of three lesser-known digital currencies. In addition to Bitcoin and Ethereum, the United States should also specifically hold XRP, Solana and Cardano, the US President announced on his social network Truth Social. Since then, the prices of these cryptocurrencies have risen by 8% (Bitcoin) and up to 60% (Solana), with Bitcoin having already begun its price correction. It was not previously expected that the USA would include other cryptocurrencies besides Bitcoin in a national reserve to be created.
In addition to Bitcoin and Ethereum, which are by far the best-known digital currencies, the USA will also hold three much lesser-known digital currencies. XRP is the oldest of the three. Issued by cryptocurrency provider Ripple Labs, the token is intended to serve as a bridge currency for transfers. A year and a half ago, it was confirmed in the USA that XRP can be freely traded on public crypto exchanges and that the SEC is not responsible for supervision. Cardano, on the other hand, comes from a co-founder of Ethereum and has been in development for ten years. Solana is the youngest of the five cryptocurrencies and yet already has an eventful history, including a high-profile hack.
With his announcement, Donald Trump has now also ensured that the cryptocurrency markets have almost completely recouped the losses of the past few days. While XRP, Solana and Cardano are now up significantly week-on-week, only Bitcoin and Ethereum have not yet recovered their price from last Monday. Trump publicized his plan for a national reserve of Bitcoin & Co. after taking office, but things went quiet afterwards. Because his trade conflicts with countries such as Canada and Mexico put pressure on US stock exchanges at the same time, cryptocurrency prices also fell sharply afterwards. This now seems to be over.
Trump, who was still a critic of cryptocurrencies such as Bitcoin during his first term in office and feared for the supremacy of the US dollar, changed his stance during the election campaign. In return, his election campaign received millions in donations from the industry, which is hoping for much more freedom from the new government. According to the news agency Reuters, Ripple was one of the largest donors from the crypto industry that not only supported Donald Trump's election. It also supported candidates for the US Congress, who are expected to incorporate the wishes into legislation.
(mho)