Ripple’s Stance on a Bitcoin Reserve: Unveiling the Debate
The Executive Order Sparking Controversy
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Following US President Donald Trump’s executive order establishing a specialized task force for digital assets on January 23, discussions around a strategic Bitcoin reserve have intensified. This executive order seeks to regulate the digital currency space and consider the formation of a “digital asset strategic reserve.” Although Bitcoin isn’t directly mentioned, the language emphasizes a wide-ranging initiative to bolster US leadership in digital financial technology, while notably prohibiting Central Bank Digital Currencies (CBDCs).
Is Ripple Challenging a Bitcoin-Exclusive Reserve?
In the wake of the executive order, Pierre Rochard, Vice President of Research at Riot Platforms and a notable early cryptocurrency adopter, made waves by accusing Ripple/XRP of being a significant hindrance to establishing a Strategic Bitcoin Reserve (SBR). According to Rochard, “The biggest obstacle for the Strategic Bitcoin Reserve is not the Fed, Treasury, banks, or Elizabeth Warren. It’s Ripple/XRP. They are aggressively lobbying against the SBR by throwing around millions at politicians, desperately trying to derail it.”
Ripple’s Alleged Agenda and Lobbying Efforts
Rochard suggests that Ripple is working to sabotage a Bitcoin-exclusive reserve in favor of a more inclusive “crypto reserve” that might incorporate XRP and other digital currencies. He further criticized Ripple’s lobbying maneuvers, highlighting co-founder Chris Larsen’s financial involvement in initiatives against Bitcoin’s energy-intensive proof-of-work mining process.
Ripple’s Response to the Accusations
Brad Garlinghouse, Ripple’s CEO, countered Rochard’s claims, stating that Ripple’s efforts are actually increasing the prospects of a crypto strategic reserve that includes Bitcoin. Garlinghouse clarified via social media that their initiatives align with promoting American technologies and companies.
Ongoing Debates and Personal Investments
The conversation took a personal turn when Rochard questioned Garlinghouse’s own investment in XRP, hinting at a possible conflict of interest. Rochard insisted that Ripple’s lobbying is more about derailing the SBR with various altcoins rather than supporting a BTC-centric reserve.
Video Evidence and Industry Opinions
Rochard shared a video of Garlinghouse advocating for a diversified crypto reserve, claiming this supports his argument that Ripple is against a Bitcoin-exclusive strategy. He also referenced an article detailing Ripple’s anti-Bitcoin campaign and the financial support for Greenpeace USA’s campaign to alter Bitcoin’s proof-of-work model.
Ripple’s Position and Industry Reactions
Ryan Selkis, founder of Messari, echoed Rochard’s perspective, suggesting Ripple’s lobbying efforts to include XRP are misguided. He argued that only Bitcoin should be considered for such a strategic reserve, given its unique qualities as an energy-adjacent commodity.
Current Market Context
As these debates continue to unfold, Bitcoin’s current market value stands at $105,012. The discussions surrounding Ripple’s position on the Strategic Bitcoin Reserve highlight the broader complexities and competing interests within the cryptocurrency landscape.
