BS EDIT: US Crypto Reserve: Strategic Move or Risky Bet?

By Business StandardPublished On Mar 5, 2025

What’s the announcement?

US to create a strategic cryptocurrency reserve

It will hold Bitcoin, Ethereum, Ripple, Sol, and Ada

Markets surged, but experts are wary

Why does it matter?

The US controls the world’s reserve currency (dollar)

Crypto reserves could undermine trust in the dollar

No clear economic justification for this move

Governments & crypto

US already holds $17B in seized crypto

China’s estimated crypto holdings: $19B

Could push central banks to invest in crypto

Market risks & conflicts

US-backed crypto reserve could manipulate prices

Buying could inflate prices, selling could crash them

Conflict of interest? Trump & allies have crypto exposure

Private vs decentralised crypto

Bitcoin is decentralised, but Ripple, Sol, Ada are privately controlled

Raises concerns about government ties & market influence

The bigger question

Why hold crypto when the US can print dollars?

Does this signal weakening confidence in the dollar?

A global financial shake-up may be coming