Could a National Dogecoin Reserve Become a Reality?

In the ever-surprising world of cryptocurrency, Dogecoin—once a parody, now a significant player—has sparked an intriguing proposition: a national Dogecoin reserve. The idea comes from Dogecoin’s co-founder Billy Markus, also known as Shibetoshi Nakamoto, who floated the concept on X (formerly Twitter).

“Why not national Dogecoin reserve tho [sic],” Markus posted on November 15, 2024, in response to speculation about President-elect Donald Trump’s potential plans to establish a strategic Bitcoin reserve.

Trump has previously voiced support for the U.S. government to acquire Bitcoin as part of its reserve assets, adding to existing holdings like land, gold, and Treasuries. With Bitcoin now boasting a staggering $1.8 trillion market cap—overtaking silver and Saudi Aramco—such a move would be a bold but plausible addition to the U.S. financial strategy.

Dogecoin, with a comparatively modest $55 billion market cap, is a different story. Initially launched as a joke, the cryptocurrency is based on the Shiba Inu meme but has evolved into a widely recognized digital asset. Its popularity soared during the 2020-2021 crypto boom, thanks in part to Elon Musk, who championed it as a potential payment solution.

While some analysts predict Dogecoin could see further price surges, potentially breaking past its 2021 all-time high, its use as a reserve asset remains speculative. However, the prospect of Dogecoin gaining legitimacy is not entirely outlandish. Wall Street’s increasing interest in cryptocurrency exchange-traded funds (ETFs) suggests a future where Dogecoin might even find itself in traditional investment portfolios.

For now, a national Dogecoin reserve remains more a whimsical musing than a policy proposal. But in the unpredictable realm of cryptocurrency, where Bitcoin itself was once dismissed as a fad, even the wildest ideas can sometimes take root.

Stranger things have happened—especially in crypto.