Former President Donald Trump floated the idea of using Bitcoin or a "crypto check" to address the United States' staggering $35 trillion national debt.
Former President Donald Trump floated the idea of using Bitcoin or a "crypto check" to address the United States' staggering $35 trillion national debt. In a recent interview with Maria Bartiromo of Fox News, Trump hinted at Bitcoin’s potential role in resolving the national debt, suggesting, “Who knows, maybe we’ll pay off our $35 trillion dollar [national debt], hand them a little crypto check, right? We’ll hand them a little Bitcoin and wipe away our $35 trillion.”
The backdrop to Trump’s proposal is the continued devaluation of the U.S. dollar as the government prints more money to service existing debts. This practice has led to a steady rise in Bitcoin’s value relative to fiat currency. To put the national debt into perspective, it took approximately 200 years for the U.S. to accumulate $1 trillion in debt, a figure now added every three months due to deficit spending.
In June alone, around 76% of all income tax revenue was allocated to paying interest on this debt, making it one of the largest expenses in the U.S. fiscal budget. Bitcoin, with its supply cap, is seen by some as a solution to this problem.
Robert F. Kennedy Jr., an independent presidential candidate, echoed this sentiment. He suggested that establishing a Bitcoin reserve could help the government manage its national debt, as the value of Bitcoin appreciates over time.
Recently, Senator Cynthia Lummis has introduced a bill to create a Bitcoin strategic reserve in the United States. Her proposal aims to counteract the negative effects of excessive monetary printing and maintain the U.S.'s financial dominance in global markets and trade. The Wyoming Senator envisions the U.S. Treasury acquiring 5% of Bitcoin’s total supply and holding this decentralized asset for at least 20 years.
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