From Skeptic to Strategist: How Trump's 2018 Meeting with Brad Garlinghouse Helped Shape the U.S. Crypto Reserve. Part # 2
Donald Trump was initially anti-crypto, publicly criticizing digital assets during his presidency. In July 2019, he tweeted, "I am not a fan of Bitcoin and other cryptocurrencies, which are not money and whose value is highly volatile and based on thin air." He also opposed Facebook’s Libra (now Diem) and emphasized that the U.S. dollar should remain the dominant global currency.
Despite this, the Trump administration engaged with key crypto figures behind the scenes. White House records show that Ripple’s Brad Garlinghouse met with Caroline Moore, a special assistant to the President and director of the Office of the Chief of Staff, on September 26, 2018, and October 3, 2018. These meetings lasted most of the day. Former Ripple chief marketing strategist Cory Johnson later stated that Ripple was working with the administration to improve the U.S. financial system.
Trump Announces the U.S. Crypto Strategic Reserve
03/02/2025 - Trump has now made a historic shift in his stance on cryptocurrency by announcing the U.S. Crypto Strategic Reserve. This reserve includes major digital assets such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA). The move signals a broader acceptance of digital assets at the national level and is part of a strategy to position the U.S. as the "Crypto Capital of the World."
The inclusion of XRP in the strategic reserve is especially significant. XRP’s cross-border payment capabilities, speed, and scalability make it an attractive option for financial restructuring. Trump’s decision to include XRP suggests an interest in exploring blockchain-based solutions to address the national debt crisis.
Bitcoin vs. XRP: Paying Off the National Debt
The U.S. national debt has surpassed $34 trillion, raising concerns about long-term fiscal stability. Trump now recognizes that blockchain technology could play a role in addressing this crisis, but the choice of cryptocurrency matters.
Bitcoin: A Costly and Volatile Option
Bitcoin, often called digital gold, has a finite supply of 21 million BTC and is valued for its scarcity. However, using Bitcoin to pay off the national debt would require a massive upfront investment:
- Bitcoin price: $104,666 per BTC (current market value)
- To acquire $1 trillion worth of Bitcoin: ~9.56 million BTC
- To cover $34 trillion in debt: ~325 million BTC (which exceeds the total supply of Bitcoin)
Even if the U.S. were to acquire all 21 million BTC, it would still only be worth $2.2 trillion, far from the amount needed to cover the national debt.
Bitcoin also presents challenges:
- High volatility: Its price fluctuates significantly, making it an unstable reserve asset.
- Massive upfront cost: Buying enough Bitcoin would require printing more U.S. dollars, which could worsen inflation.
- High transaction fees: Bitcoin transactions can be costly and slow, making it impractical for large-scale debt repayment.
- Environmental concerns: Bitcoin mining consumes massive amounts of energy, which could face regulatory pushback.
XRP: The Zero-Cost, High-Growth Alternative
XRP, the digital asset linked to Ripple Labs, offers a different approach. Unlike Bitcoin, XRP could be acquired by the U.S. for free by seizing the 50 billion XRP held in Ripple’s escrow.
- Current XRP price: $3.11 per XRP
- Value of 50 billion XRP at current price: $155.5 billion
- Potential future price: If XRP reaches $500 per coin, the 50 billion XRP would be worth $25 trillion—enough to eliminate most of the U.S. debt.
- At $1,000 per XRP: The value would be $50 trillion, creating a national surplus.
Why XRP is the Better Bet for Debt Reduction
1. No Upfront Cost – The U.S. would not need to spend taxpayer money or print dollars to acquire XRP. In contrast, Bitcoin would require trillions in capital to be purchased.
2. Liquidity and Scalability – XRP is designed for fast, low-cost transactions (3–5 seconds per transaction with near-zero fees), making it ideal for large-scale financial operations like paying off debt.
3. Institutional and Global Adoption – Ripple’s partnerships with banks, financial institutions, and governments make XRP a practical solution for international settlements.
4. Growth Potential – If XRP wins its legal battle against the SEC and gains widespread adoption, its price could surge, allowing the U.S. to settle its debt without additional spending.
5. Energy Efficiency – Unlike Bitcoin, XRP does not require mining, making it a sustainable financial solution.
Conclusion: XRP Over Bitcoin for National Debt Strategy
While Bitcoin has long been considered a store of value, it is impractical for paying off the U.S. national debt due to high costs, volatility, and limited supply. XRP, on the other hand, presents a zero-cost, high-growth solution that could realistically help eliminate U.S. debt if its price appreciates.
Trump’s shift toward blockchain suggests a strategic pivot, recognizing that XRP—not Bitcoin—could be the key to reshaping the financial system and securing America's economic future. His initial anti-crypto stance may have been a public façade while behind-the-scenes discussions took place to integrate digital assets into the U.S. financial strategy.