Citigroup: The possibility of the U.S. establishing a strategic reserve for cryptocurrencies is increasing, but details remain to be clarified

ChainCatcher news, according to CoinDesk, Citibank stated in a research report that the likelihood of the U.S. establishing a strategic reserve for cryptocurrencies has increased following President Trump's announcement over the weekend.

Citibank analyst Alex Saunders pointed out, "The U.S. government's potential further plans to become a strategic holder of digital assets will enhance the perceived legitimacy of this asset class." The report mentioned that the U.S. government currently holds approximately $19 billion in cryptocurrencies (primarily Bitcoin), compared to $750 billion in gold.

Citibank noted that most of the crypto assets held by the government come from seizures, mainly Bitcoin, which means that accumulating other digital assets may require purchases on the open market. However, "the criteria for selection are not clear at this time," and announcing such investments in advance could lead to adverse price movements, similar to what the British government experienced when purchasing gold in the late 1990s. Citibank suggested that providing clearer information on the selection criteria for which tokens will be included in the reserves would offer more support to the market.