Trump Suggests Bitcoin to Pay Off U.S. Debt

Trump's bold proposal to use Bitcoin to address America's $35 trillion debt sparks debate and raises eyebrows.

Donald Trump has intensified his Bitcoin advocacy, proposing the U.S. could use the leading digital asset to address its $35 trillion debt. "Hand ‘em a little crypto check, right? We’ll hand ‘em a little Bitcoin, and wipe out our $35 trillion,” Trump said in a FOX Business interview with Maria Bartiromo. The idea, while far-fetched given Bitcoin's current market cap of $1.2 trillion, echoes sentiments from Sen. Cynthia Lummis (R-WY), who has introduced a bill for the U.S. to invest in Bitcoin to tackle long-term debt.

The federal government currently holds about $13 billion in Bitcoin, a fraction of the total needed to address the national debt. Nevertheless, Trump's comments have added a new dimension to the ongoing debate about Bitcoin's role in the U.S. financial strategy. Vice President Kamala Harris’s campaign highlighted Trump’s remarks on Twitter without further comment.

Sen. Lummis's bill, introduced at the Bitcoin 2024 conference, proposes establishing a strategic Bitcoin reserve and allowing the U.S. Treasury to acquire 1 million BTC over five years. Trump’s endorsement of using Bitcoin to manage national debt is a significant escalation of his previous support for creating a Bitcoin stockpile.

“It’s already prominent,” Trump said, emphasizing that loose regulations have allowed cryptocurrency to grow and benefit the country. This bold approach aims to position Bitcoin not just as a strategic asset but as a potential tool for national financial solvency.

photo source / Blockonome