Skip to main content

Market Overview

JPMorgan Questions Viability of US Crypto Reserve, Cites Issues With Smaller Tokens

Share:
JPMorgan Questions Viability of US Crypto Reserve, Cites Issues With Smaller Tokens

A senior JPMorgan Chase & Co (NASDAQ:JPM) strategist voiced doubts about the feasibility of establishing a U.S. strategic cryptocurrency reserve, pegging its chances of approval at below 50% and raising concerns about including tokens such as XRP (CRYPTO: XRP), Solana (CRYPTO: SOL) and Cardano (CRYPTO: ADA).

Nikolaos Panigirtzoglou, who oversees global market strategy at the bank, shared this perspective with The Block, noting that legislative support remains uncertain.

President Donald Trump's recent suggestion to incorporate these digital assets alongside Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) triggered a short-lived market upswing, but skepticism soon emerged over the plan's practicality.

In a detailed analysis released midweek, JPMorgan highlighted the initial excitement in crypto markets following Trump's proposal, which extended beyond major currencies to include less prominent ones.

Panigirtzoglou pointed out potential pitfalls, explaining that adding smaller cryptocurrencies could heighten instability and risk, making their inclusion challenging.

Also Read: Vladimir Putin Said ‘Nobody Can Ban Bitcoin,’ But Russia Isn’t Looking To Follow Donald Trump’s Push For A Crypto Reserve – Benzinga

He stressed that the focus would likely stay on Bitcoin and Ethereum due to their established profiles, a stance reflected in the report's findings.

The document also referenced prior setbacks at the state level, where efforts to create Bitcoin reserves in states such as Montana, North Dakota, South Dakota and Wyoming faltered, with officials citing unpredictable price swings as a major hurdle.

Internationally, central banks have shown similar reservations, with Switzerland and Poland dismissing Bitcoin for reserve purposes and Singapore opting against cryptocurrencies in its investment portfolio.

The report further noted criticism from the European Central Bank, underscoring a global wariness among financial authorities about adopting digital currencies as official holdings.

Read Next:
Michael Saylor Hints US Will Buy 1 Million Bitcoin For Strategic Reserve

Photo: Shutterstock

 

Related Articles (XRP)

View Comments and Join the Discussion!

Posted-In: Bitcoin Reserve crypto regulation Crypto Reserve Donald TrumpCryptocurrency Government Global Media

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com