Crypto Dreams: Trump's Bold Bitcoin Reserve Plan Stirs Global Debate

Crypto leaders, including Coinbase's CEO Brian Armstrong, praised Donald Trump's presidency for its positive impact on cryptocurrency. Speaking at Davos, South Africa's central bank chief criticized the idea of a U.S. bitcoin reserve, warning of lobbyist influence. The crypto sector faces scrutiny over its financial regulatory influence.

Amid a gathering of cryptocurrency executives buoyed by the Trump administration, South Africa's central bank head voiced concerns about the sector's influence over U.S. policymaking. During a panel at Davos, he argued that bitcoin should not be regarded as a reserve asset, likening it to commodities like beef or apples.

Brian Armstrong, CEO of Coinbase, praised Trump's presidency, calling it a harbinger of investment in crypto. He lauded the 'Trump effect' on bitcoin prices, noting its rise past $100,000 following the election. Armstrong also supported Trump's proposal for a government bitcoin reserve, despite opposition from other financial leaders.

The crypto industry's lobbying efforts, including significant campaign contributions, have drawn criticism. Franklin Templeton's CEO stressed the need for regulatory clarity to make institutional investors comfortable with cryptocurrency. Meanwhile, the mood in the crypto space remains optimistic, celebrating potential advancements under Trump's leadership.

(With inputs from agencies.)