Prominent financial commentator Peter Schiff has fueled a wave of controversy after voicing his strong skepticism about the inclusion of XRP in a multi-token cryptocurrency reserve. The outspoken critic, known for his bearish views on Bitcoin, recently questioned the rationale behind the decision, especially when it comes to the Ripple-affiliated XRP token.

Schiff Questions XRP’s Role in the Reserve

In a tweet that has since drawn widespread attention, Schiff posed a simple yet blunt question: “But what’s the rationale for an XRP reserve? Why the hell would we need that?” Schiff, who has long been a critic of cryptocurrencies, particularly Bitcoin, expressed that while he understands the logic behind a Bitcoin reserve — given its status as a digital form of gold — the inclusion of XRP seemed unfounded.

Schiff’s confusion stems from the fact that Bitcoin has garnered recognition as a store of value and a hedge against inflation, which has led many to propose it as a reserve asset. In contrast, XRP’s role in the cryptocurrency ecosystem has often been clouded by regulatory issues and a perception that it serves a more niche purpose in facilitating cross-border payments. Schiff’s criticism reflects a broader skepticism about XRP’s place in the crypto world.

Bitcoiners Rally Behind Schiff’s Criticism

Interestingly, despite being known for his criticism of Bitcoin, Schiff found unexpected support from the Bitcoin community in his remarks on XRP. On-chain analyst James Check, a pro-Bitcoin figure, even tweeted, “This is the best tweet you have ever compiled. Welcome home, Peter,” signaling that many Bitcoin enthusiasts agree with Schiff’s assessment.

Schiff’s comments about XRP come at a time when many Bitcoin supporters are increasingly vocal about the asset’s dominance and status as the leading store of value in the digital age. Some even argue that any multi-token reserve should focus on Bitcoin alone, a sentiment shared by industry figures such as Hunter Horsley, CEO of Bitwise. Horsley noted that a Bitcoin-only reserve would make “the most sense” given the cryptocurrency’s undisputed position as a store of value.

Charles Hoskinson Defends XRP

On the other hand, Charles Hoskinson, the founder of Cardano, offered a counterpoint to Schiff’s criticism. Despite having a history of disagreements with the XRP community, Hoskinson took to social media to defend the token. He praised XRP’s technology and noted that it had survived for over a decade, built one of the strongest communities in the crypto space.

Hoskinson’s defense of XRP highlights the continued debate over the token’s value and utility. While some view it as an integral part of the cryptocurrency ecosystem, others, like Schiff, remain unconvinced about its broader role and future prospects.

The Multi-Token Reserve Controversy

The inclusion of XRP in a multi-token reserve has already stirred a significant amount of controversy. In addition to XRP, the reserve will also feature Solana (SOL), Cardano (ADA), and Ethereum (ETH). The declaration of this multi-token reserve has led to a notable price surge in the prices of these cryptocurrencies, with many analysts speculating about the impact this could have on the market.

Despite this, some industry leaders are questioning whether a multi-token approach is the right move. Bitwise’s Hunter Horsley, for example, has argued that a Bitcoin-only reserve would be the most logical and effective choice. According to Horsley, Bitcoin’s established status as a store of value for the digital age makes it the natural choice for such a reserve.

Conclusion: A Divisive Debate

Peter Schiff’s criticism of the inclusion of XRP in a multi-token cryptocurrency reserve adds another layer to the ongoing debate about the role of various cryptocurrencies in the financial ecosystem. While some defend XRP’s utility and long-standing community, others, like Schiff and certain Bitcoin proponents, remain skeptical of its inclusion in such a strategic reserve.

As the cryptocurrency landscape continues to evolve, this debate will likely persist. What is clear, however, is that Bitcoin’s position as the leading digital asset remains uncontested by many, with its role as a store of value continuing to be a key factor in discussions about the future of money.