Trump Presidency Sparks Renewed Crypto Optimism, Coinbase CEO Highlights Investment Potential at Davos
The global cryptocurrency sector has seen a surge in optimism following Donald Trump’s presidency, with industry leaders highlighting the potential for significant investment growth. At a panel discussion during the World Economic Forum in Davos, Coinbase CEO Brian Armstrong emphasized the unprecedented impact of Trump’s crypto-friendly stance.
“The Trump effect cannot be denied. To have the leader of the largest GDP country openly supporting cryptocurrency and aspiring to be the first crypto president is historic,” Armstrong stated. He noted that Bitcoin reached all-time highs above $100,000 following Trump’s election and predicted further momentum in the sector.
Trump’s plan to establish a U.S. government bitcoin reserve has been a focal point of industry discussions. While Armstrong praised the initiative, South African Reserve Bank Governor Lesetja Kganyago expressed concerns about undue industry influence, comparing the concept to holding reserves of other commodities like beef or apples. “Bitcoin as a reserve asset makes no more sense than mutton or coal reserves,” Kganyago remarked.
Despite differing opinions, the cryptocurrency industry has ramped up lobbying efforts, with major players like Coinbase and Ripple spending over $119 million backing pro-crypto U.S. congressional candidates. Armstrong defended the lobbying efforts, calling them a sign of “democracy working.”
Meanwhile, institutional investors remain cautious. Jennifer Johnson, CEO of Franklin Templeton, highlighted the need for regulatory clarity to instill confidence in large-scale investors. “There’s a disconnect between the rapid growth of crypto and the hesitation of big money managers,” Johnson noted.
As Trump’s plans for a bitcoin reserve continue to gain traction, crypto executives celebrated his inauguration with a ball in Washington, signaling renewed confidence in the sector. This marks a stark contrast to the downturn in 2022, which saw several top crypto firms face bankruptcies and scandals.
