Coinbase CEO Says U.S. Strategic Reserve Should Include Bitcoin as Primary Asset

Coinbase CEO Brian Armstrong proposed two options on X (formerly Twitter) for the US Strategic Reserve asserting that the reserve should include Bitcoin as the primary asset.

He noted that he prefers using only Bitcoin, comparing it to gold as a reliable store of value. This positions Bitcoin as a modern gold alternative in the global financial system. He also suggested a diversified portfolio using a market cap-weighted cryptocurrency index. Armstrong believes Bitcoin is the best single strategic asset due to its inherent value.

Trump Pursues U.S. Strategic Reserve

President Trump’s plan for a US cryptocurrency reserve has sparked a lot of discussion among financial experts and cryptocurrency enthusiasts. The initiative, in line with Executive Order 14178, wants to make the US a world leader in digital currencies, according to an X tweet from David Sack.

President Trump’s plan to create a national cryptocurrency reserve including Bitcoin, Ethereum, Solana, Cardano, and XRP has sparked debate. Supporters believe this would boost investment, increase cryptocurrency use, and make the U.S. a leader in the digital currency world. They see it as a major step toward accepting cryptocurrencies into the regular financial system. However, there’s no consensus on how this reserve should be structured.

Conversely, critics have expressed reservations, citing potential logistical and financial hurdles. Arthur Hayes, co-founder of BitMEX, voiced skepticism, highlighting the absence of congressional approval and the need for a gold revaluation to facilitate the substantial capital expenditure required for large-scale cryptocurrency acquisition. The lack of clarity surrounding the funding mechanism casts doubt on the feasibility of the project in its current form.

Brian Armstrong’s Stance

Armstrong’s second proposed strategy involves a market capitalization-weighted index of various cryptocurrencies “to keep it unbiased”.

This approach would distribute assets proportionally to each coin’s market share, thereby mitigating potential accusations of favoritism and ensuring the reserve reflects the evolving dynamics of the cryptocurrency market. However, this method introduces greater complexity and potentially increased volatility.

The stark contrast between these proposed approaches highlights the fundamental challenges in constructing a national cryptocurrency reserve. A Bitcoin-only strategy offers simplicity and aligns with its established position as a digital gold, but limits diversification. A market cap-weighted index, while promoting impartiality, introduces complexities and potential vulnerabilities to market fluctuations.