Pierre Rochard, Vice President of Research at Riot Platforms, has alleged that Ripple poses the greatest challenge to establishing a Strategic Bitcoin Reserve (SBR).
According to Rochard, Ripple’s resistance stems from its vested interest in promoting central bank digital currencies (CBDCs), designed to operate on Ripple’s infrastructure.
Ripple’s Alleged Opposition to a Bitcoin Reserve
Rochard voiced his concerns on X (formerly Twitter), alleging that Ripple has been extensively lobbying against the SBR initiative. He accused the company of spending “millions” to influence politicians and derail the initiative.
“The biggest obstacle for the Strategic Bitcoin Reserve is not the Fed, Treasury, banks, or Elizabeth Warren. It’s Ripple/XRP,” Rochard’s post read.
He further alleged that Ripple had previously targeted Bitcoin mining during Joe Biden’s administration, asserting that the company aims to protect its marketing narratives and prioritize CBDCs built on its platform.
CBDCs are digital versions of a nation’s fiat currency. Unlike cryptocurrencies like Bitcoin (BTC), which operate on decentralized networks, CBDCs are centralized and controlled by a single authority, such as the nation’s central bank.
Notably, Ripple was quite active in CBDC development. In May 2023, the company launched a dedicated platform to offer assistance in issuing CBDCs and stablecoins.
Rochard suggested that Ripple had hoped former Vice President Kamala Harris would support the implementation of a US CBDC using Ripple’s technology. In the presidential campaign, Chris Larsen, co-founder of Ripple, publicly endorsed Harris.
Reports indicate Larsen contributed over $11 million to political action committees (PACs) supporting Harris. Meanwhile, Ripple CEO Brad Garlinghouse emphasized the company’s bipartisan approach to fostering crypto-friendly policies in the US.
However, Rochard claimed Ripple was caught off guard by Donald Trump’s presidential victory and subsequently intensified its lobbying efforts to influence US policy in its favor.
Trump has been a vocal critic of CBDCs, describing them as tools of “government tyranny.” During his campaign, Trump declared he would “never allow” a CBDC to take root.
On Thursday, he signed an executive order banning the creation and issuance of CBDCs in the United States.
In response to Rochard’s claims, Ripple CEO Brad Garlinghouse dismissed the accusations.
“Unless you are choosing to ignore the core tenets of the POTUS campaign (which aggressively supports American companies and technologies), our efforts are actually INCREASING the likelihood of a crypto strategic reserve (which includes Bitcoin) happening,” the CEO posted on X.
Rochard, however, maintained that any Strategic Bitcoin Reserve should exclusively involve Bitcoin.
“Wanting to add random “cryptos” is anti-SBR,” he stated.
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