Pierre Rochard, Vice President of Research at Riot Platforms, has claimed that Ripple represents the most significant hurdle to the establishment of a Strategic Bitcoin Reserve (SBR).
As per Rochard, Ripple’s opposition is rooted in its strong inclination toward advocating central bank digital currencies (CBDCs), which are intended to operate on Ripple’s framework.
Ripple’s Alleged Resistance to a Bitcoin Reserve
Rochard expressed his apprehensions on X (previously Twitter), claiming that Ripple has been vigorously lobbying against the SBR project. He accused the firm of expending “millions” to sway lawmakers and block the initiative.
“The primary impediment to the Strategic Bitcoin Reserve is not the Fed, Treasury, banks, or Elizabeth Warren. It’s Ripple/XRP,” Rochard’s post stated.
Moreover, he alleged that Ripple had previously targeted Bitcoin mining during Joe Biden’s presidency, arguing that the company seeks to safeguard its marketing narratives and prioritize CBDCs developed on its platform.
CBDCs are digital equivalents of a nation’s fiat currency. Unlike cryptocurrencies such as Bitcoin (BTC), which function on decentralized structures, CBDCs are centralized and governed by a single entity, such as the nation’s central bank.
Notably, Ripple has been quite proactive in CBDC development. In May 2023, the company introduced a specialized platform to assist in the issuance of CBDCs and stablecoins.
Rochard implied that Ripple had expected former Vice President Kamala Harris to advocate for the launch of a US CBDC leveraging Ripple’s technology. In the presidential race, Chris Larsen, co-founder of Ripple, openly supported Harris.
Reports suggest Larsen contributed more than $11 million to political action committees (PACs) backing Harris. Meanwhile, Ripple CEO Brad Garlinghouse highlighted the company’s bipartisan approach to promoting crypto-friendly policies in the US.
However, Rochard asserted that Ripple was taken by surprise by Donald Trump’s presidential win and subsequently ramped up its lobbying initiatives to shape US policy to its advantage.
Trump has been a outspoken critic of CBDCs, labeling them as instruments of “government tyranny.” During his campaign, Trump proclaimed he would “never permit” a CBDC to gain a foothold.
On Thursday, he enacted an executive order prohibiting the creation and issuance of CBDCs in the United States.
In reaction to Rochard’s assertions, Ripple CEO Brad Garlinghouse rejected the allegations.
“Unless you are opting to overlook the fundamental principles of the POTUS campaign (which staunchly supports American enterprises and innovations), our endeavors are actually INCREASING the probability of a crypto strategic reserve (which includes Bitcoin) materializing,” the CEO posted on X.
Nevertheless, Rochard upheld that any Strategic Bitcoin Reserve should solely consist of Bitcoin.
“Desiring to incorporate random “cryptos” is anti-SBR,” he asserted.
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