A cryptic move: US cryptocurrency reserve sparks puzzlement and alarm

The US, for example, holds around $17 billion equivalent of cryptocurrencies seized from criminals, and China is estimated to hold around $19 billion

The announcement by American President Donald Trump that the United States will create a strategic cryptocurrency reserve has led to a big rally in the crypto market and also caused both puzzlement and alarm in broader economic circles. Mr Trump says the reserve will hold five different cryptocurrencies — Bitcoin, Ethereum, Ripple, Sol, and Ada. A strategic reserve such as the petroleum reserve the US holds (as does India) is created in order to enable action in the market when imbalances in supply and demand may cause disruption. It is hard to imagine a situation where a cryptocurrency reserve can