President Donald Trump sparked a crypto firestorm on Sunday after his posts on the Truth Social platform referenced a U.S. crypto reserve for the world’s biggest economy.

Trump announced XRP, Solana (SOL), and Cardano (ADA) as cryptocurrencies to be included in the crypto reserve, a strategic initiative aimed at positioning the US as a global leader in digital assets, sparking a sharp rally in these tokens’ prices. 

After initially naming only these three assets, the President later added Bitcoin (BTC) and Ethereum (ETH) to the list of assets composing the reserve — and has been mulling the idea of a strategic crypto reserve since his 2024 presidential campaign.

Renowned financial commentator Peter Schiff specifically questioned the inclusion of XRP in the crypto reserve while acknowledging the rationale behind including BTC.

Bitcoin Is “Digital Gold”: Schiff

Popular gold bug Peter Schiff has admitted he gets the rationale behind a Bitcoin reserve since the world’s largest crypto is usually considered a digital version of gold. “Bitcoin is digital gold, which is better than analog gold. So let’s create a Bitcoin reserve too,” the gold bug surprisingly admitted.

However, Schiff is puzzled by the inclusion of XRP in the reserve.

“But what’s the rationale for an XRP reserve? Why the hell would we need that?” Schiff quizzed. 

Bitcoiners were quick to concur with Schiff even though he is a notorious crypto skeptic, arguing for a Bitcoin-only approach rather than incorporating what some term as “shitcoins.”

“This is exactly correct. The only cryptocurrency it makes sense for the government to hold long-term is Bitcoin. Will XRP even be here in 10 years? Who knows?” one onlooker said on X.

Charles Hoskinson Defends XRP

Meanwhile, Charles Hoskinson, creator of Cardano — another altcoin included in the crypto reserve — came to XRP’s defense, stating that it is a “great technology” and a “global standard”. Hoskinson also noted that XRP has survived for a decade with “one of the strongest communities.”

“I think the president made the right decision,” he quipped.

Notably, Hoskinson has previously found himself embroiled in a heated clash with members of the XRP community. In late 2022, he labeled the XRP community as “toxic and petty”, adding that the payments-focused token “provides no partnership or technical value.”

However, the Cardano founder has made surprising moves in recent months to mend ties with XRP adherents.

Ripple CTO David Schwartz was in disbelief after Hoskinson recently heaped praises on XRP, even questioning whether he was dreaming. Hoskinson responded:

“No, I just appreciate your work after spending some time with the code and protocol for the Glacier Drop.”

El Salvador bought a further 5 BTC for its national reserve, worth roughly $415,000, as the top crypto nosedived to sub-$83,000 on Monday, reversing Sunday’s price rally to $95,000.

Continuing A Bitcoin Purchase Streak

According to the El Salvador National Bitcoin Office, the Central American nation purchased 5 BTC, which is four more than its usual one Bitcoin per day.

The latest purchase takes its Bitcoin stockpile to 6,100.18, worth $513 million at today’s prices, with BTC struggling as President Trump’s tariffs against Canada, Mexico, and China take effect. Notably, the president’s latest tariff announcements primarily triggered the crypto-wide, erasing the previous day’s U.S. crypto strategic reserve gains.

El Salvador’s continued Bitcoin acquisition comes as it agreed to scale back some of its pro-Bitcoin policies as part of a $1.4 billion loan deal with the International Monetary Fund.

These adjustments came around three years after the tiny Latin American nation passed the Bitcoin Law in September 2021, becoming the first country in the world to officially recognize BTC as legal tender.

IMF Pushes Back On BTC Adoption In El Salvador

Some of those agreements included winding down the government-provided crypto wallet, Chivo, and making it optional and voluntary for local businesses to accept Bitcoin as a means of payment. As ZyCrypto previously reported, El Salvador’s Congress rushed to approve legislation to amend its Bitcoin Law to comply with the IMF agreement.

Nevertheless, the Salvadoran government has continued to purchase BTC despite the deal. In fact, the nation snapped up $1 million worth of Bitcoin just a day after signing the agreement with the IMF. 

National Bitcoin Office Director Stacy Herbert said in late December that El Salvador’s plans had not changed post-IMF, and that the country would continue buying BTC for its Strategic Bitcoin Reserve “at possibly an accelerated pace.” 

However, the International Monetary Fund is now looking to prohibit the voluntary accumulation of BTC by the public sector during the program as part of an extended $1.4 billion funding agreement with the nation.