US Bitcoin reserve proposal ignites debate on cryptocurrency's future

The idea of establishing a U.S. Bitcoin (CRYPTO:BTC) reserve has sparked significant discussions at the 2025 World Economic Forum in Davos, coinciding with President Donald Trump's return to office.

During a dedicated session focused on cryptocurrencies, industry leaders expressed optimism regarding Bitcoin's future in the U.S., despite the recent excitement surrounding the launch of the Official Trump (CRYPTO:TRUMP) memecoin.

Coinbase CEO Brian Armstrong reassured attendees that the momentum for a strategic Bitcoin reserve remains strong.

“I don’t think it undermined anything with the strategic Bitcoin reserve. That effort is still alive and well,” he stated, highlighting support from Senator Cynthia Lummis.

The concept of a national Bitcoin reserve was initially proposed by Trump and other advocates during the Bitcoin 2024 conference.

Armstrong elaborated on this initiative, comparing it to how governments hold reserves in gold and oil.

“Many governments hold gold but I think they should hold Bitcoin because it is essentially the new gold standard,” he emphasised.

However, not all panelists shared this enthusiasm.

Lesetja Kganyago, governor of the South African Reserve Bank, questioned the practicality of such a reserve, suggesting that South Africa would not likely follow suit.

He pointed out that while Bitcoin has historical significance, it lacks the established value of gold.

Armstrong countered Kganyago’s skepticism by asserting that Bitcoin offers superior qualities as money compared to gold, citing its scarcity and portability.

He argued that central banks might eventually hold more Bitcoin than gold.

The discussion also touched upon the influence of U.S. political dynamics on cryptocurrency regulation.

Anthony Scaramucci from SkyBridge Capital remarked on the Democratic Party's lack of engagement with crypto issues, suggesting that Trump's presidency could lead to significant changes in the industry.

At the time of reporting, the Bitcoin (BTC) price was $103,447.