TechFlow news, March 3 — According to CoinDesk, Citigroup stated in a research report that the possibility of the United States establishing a cryptocurrency strategic reserve has increased following President Trump's announcement over the weekend. Citigroup analyst Alex Saunders noted: "Further plans for the U.S. government to become a strategic holder of digital assets would enhance the perceived legitimacy of this asset class." The report mentioned that the U.S. government currently holds approximately $19 billion in cryptocurrencies (mainly Bitcoin), compared to $750 billion in gold.
Citigroup said that since most of the government's crypto holdings have been acquired through seizures—primarily Bitcoin—accumulating other digital assets would likely require purchases on the open market. However, "the selection criteria are currently unclear," and pre-announcing such investments could lead to adverse price movements, as occurred when the UK government purchased gold in the late 1990s. Citigroup suggested that providing greater clarity on which tokens would be included in the reserve would offer stronger support to the market.
