An American cryptographic strategic reserve seems more likely after President Trump’s announcement during the weekend, Wall Street Bank Citi (C) on a research report said on Monday.
The president announced that XRP, Solana (Sol) and Cardano (ADA) would be included in a strategic reserve, and then added Bitcoin (BTC) and Ether (ETH) to the list of assets.
“The announcement of more plans for the United States government potentially to become a strategic holder of digital assets would be added to the perceived legitimacy” of the asset class, analyst Alex Saunders wrote.
Citi said that the United States government currently owns around $ 19 billion in cryptocurrencies, mainly in Bitcoin, versus $ 750 billion in gold.
The vast majority of seizure government holdings are in Bitcoin, which means that it is likely that the accumulation of other digital assets will be financed by open market purchases, according to the report.
Even so, “the selection criteria are not currently clear”, and previously on such investments it can move prices against an investor, the bank said, adding that this happened to the United Kingdom government with gold in the late 1990s.
The additional clarity about the selection criteria for which tokens will be included in the reserve would provide more support, the bank said.
The Bernstein corridor said the Federal Reserve could issue debts or sell some of its gold reserves to finance cryptocurrency purchases, in a report last month.
Read more: US Cryptographic Working Group
