Donald Trump plans to pay off US debt with Bitcoin
US President Donald Trump proposed using cryptocurrencies to reduce the national debt, which has already exceeded $38 trillion. Speaking at a closed event, he initiated the discussion by highlighting Bitcoin's potential to solve the country's financial problems. Trump stated that digital assets hold significant promise and could help reduce the national debt.
The US President has previously repeatedly called BTC a tool for saving the national economy. Meanwhile, Fidelity analysts have calculated that the cryptocurrency market leader must reach $1.9 million to cover the US debt.
Currently, the US government holds only 326,300 BTC, mostly acquired through forfeitures in various criminal cases. If these reserves alone were used to pay down the national debt, Bitcoin's value would reach $116.5 million, a 1,000-fold increase over its current level.
This would increase the asset's market capitalization to $230 trillion, exceeding current global GDP. Selling coins at such a price, in turn, would trigger a liquidity crisis and a market collapse. Institutional investors remain optimistic about the leading digital currency's prospects. Following Trump's inauguration, the volume of crypto transactions in the US has risen sharply.
Experts believe that full debt repayment via BTC is unfeasible due to volatility and regulatory barriers. However, Trump's remarks are fueling politicians' interest in digital currencies. In 2025, the US may expand its crypto reserves for diversification, which would strengthen investor confidence and accelerate global adoption of digital assets.
Analysts estimate that if Bitcoin were to price $1 million, its market capitalization would reach $20 trillion, which would cover more than 50% of the US national debt. Full repayment, however, would require radical steps. Trump recently announced tax breaks for digital asset holders. The presidential administration is currently exploring the possibility of creating a stablecoin whose value would be pegged to the dollar.
Source: cryptonews.net
