Bitcoin reserve proposal gains traction at Davos forum

The influence of US politics, particularly the positive impact of Trump’s administration on the cryptocurrency sector, was also highlighted, with critiques of the Democratic Party’s lack of engagement and a shift towards international markets due to an unfavourable US regulatory environment.

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At the 2025 World Economic Forum (WEF) in Davos, the cryptocurrency industry engaged in intense debate, particularly surrounding Bitcoin and its potential role as a strategic reserve asset for the US. Coinbase CEO Brian Armstrong reaffirmed that the push for a Bitcoin reserve, backed by figures like US Senator Cynthia Lummis and President Donald Trump, remains strong despite the recent memecoin frenzy surrounding Trump’s TRUMP token. Armstrong emphasised that Bitcoin, much like gold, is a valuable reserve asset due to its scarcity, portability, and divisibility, potentially making it a new gold standard for global reserves.

While the concept of a Bitcoin reserve gained support from many, Lesetja Kganyago, the governor of South Africa’s Reserve Bank, expressed doubts. He questioned why Bitcoin should replace traditional reserves like gold or even other natural resources like platinum. However, Armstrong countered by highlighting Bitcoin’s advantages over gold, noting that its higher utility and performance make it a strong candidate to eventually surpass gold in central bank reserves.

The session also delved into the growing influence of the US cryptocurrency lobby, particularly the positive effects of Trump’s administration on the sector. SkyBridge Capital’s Anthony Scaramucci critiqued the Democratic Party for failing to engage with the rapidly evolving crypto industry, while others noted the industry’s shift towards international markets due to the challenging regulatory environment in the US. Armstrong added that ‘the Trump effect’ has provided the sector with new optimism, suggesting a more favourable climate for crypto growth under the new administration.