Strategic Reserve

Definition ∞ A ‘Strategic Reserve’ is a store of assets maintained by an entity, such as a nation or corporation, for specific purposes beyond routine operations. In financial contexts, it might refer to holdings of gold, foreign currency, or, increasingly, digital assets, intended to buffer against economic shocks, manage currency stability, or facilitate specific market interventions. These reserves are typically managed with a long-term view towards financial security and stability.
Context ∞ The concept of a ‘Strategic Reserve’ is gaining traction within discussions about digital assets, particularly regarding stablecoins and central bank digital currencies (CBDCs). Entities are evaluating the potential role of digital assets in bolstering financial resilience or managing monetary policy. The composition and management of such reserves are subject to considerable debate, especially concerning the risks and benefits of incorporating volatile or novel asset classes.