Exploring the Potential of XRP as a US Strategic Reserve Asset
In a thought-provoking discussion on X, attorney Jeremy Hogan from Hogan & Hogan P.A., recognized for his insightful perspectives within the XRP community, introduced a concept that has sparked considerable debate. Hogan proposed that the US government might consider designating XRP as part of a strategic reserve, a notion that has not been widely discussed before.
Could XRP Become Part of a US Strategic Reserve?
Jeremy Hogan shared his thoughts, saying, “Consider the idea of XRP being included in a US digital asset strategic reserve.” He emphasized that many in the crypto community analyze this issue from a typical ‘crypto’ standpoint, focusing on aspects like decentralization and validator selection. However, he argued that these factors may not hold the same importance for the US government.
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Hogan’s perspective shifts the conversation from the usual cryptocurrency discourse, which often centers on decentralization and governance of validators. Instead, he highlighted that governmental bodies might prioritize utility and control. “A strategic reserve is an asset, such as gold or oil, that the government believes should be held in reserve to protect the populace from potential threats,” Hogan elaborated. “Should the US government decide to hold XRP in reserve, it would be based on perceived benefits, perhaps as a hedge against future uncertainties.”
He further speculated that the government might possess confidential insights into global tensions or economic scenarios where holding XRP could be advantageous. Hogan even suggested that if Ripple acted contrary to US interests, authorities could employ measures reminiscent of industrial takeovers during World War II or the 1933 gold confiscation.
Hogan continued, “Perhaps the US government has deeper insights into geopolitical events necessitating a reserve of XRP in the future than the average Bitcoin enthusiast. Moreover, if Ripple jeopardized the XRP network, the government could potentially seize control of Ripple or confiscate XRP held in escrow.”
Community Reactions and Broader Implications
Hogan’s comments generated diverse responses from the community. One user, Hememan, remarked, “That’s a fascinating idea. ‘Made in USA’ holds significant implications in this context. You’re spot on about decentralization not affecting government ownership or hedging.” Hogan replied, “To them, it doesn’t matter. Centralization is easier to manage, and they might even prefer it.”
Other contributors offered unique perspectives. The crypto influencer Jungle Inc humorously noted, “They’ll hold it for the same reason they’ll hold BTC; some wealthy individual might make substantial donations during the midterms,” prompting Hogan to acknowledge, “That’s a possibility too.”
Ripple’s CEO, Brad Garlinghouse, has previously expressed doubts about a single-asset Strategic Bitcoin Reserve (SBR). Instead, he advocated for a diversified approach, integrating XRP and other US-based digital assets to reduce volatility and provide comprehensive protection against varying market conditions.
Meanwhile, Ripple’s lobbying efforts faced criticism from Pierre Rochard, Vice President of Research at Riot Platforms, along with other prominent members of the Bitcoin community. Rochard accused Ripple of investing heavily in lobbying against a Bitcoin-centric SBR, allegedly aiming to broaden the reserve to include multiple cryptocurrencies, positioning XRP as a key beneficiary.
As of the latest updates, XRP was trading at $2.41.
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