Former U.S. President and Republican candidate Trump continues to advocate Bitcoin during his re-election campaign in November this year.
Trump said in a recent statement that Bitcoin could help solve the huge U.S. national debt.
Trump’s Proposal to Use Bitcoin for U.S. Treasury Debt
In an interview with Fox News’ Maria Bartiromo, Trump suggested that Bitcoin has the potential to eliminate the United States’ $35 trillion in foreign debt. He believes that if effectively adopted and supported, these digital assets can benefit the country.
“Who knows? Maybe we can pay off the $35 trillion in foreign debt and give them a check in cryptocurrency, right? Why don’t we spend the $35 trillion and buy a little bit of Bitcoin?” Trump said.
The U.S. Treasury debt has become a hot topic, especially since it surpassed $35 trillion. The United States has accumulated about $12 trillion in federal debt since 2020, according to market analysis platform Kobeish Letters. Current deficit spending relative to GDP is at World War II levels.
The Debate Surrounding Bitcoin and U.S. National Debt
In fact, the idea of using Bitcoin to reduce the national debt is not new. This is consistent with the Bitcoin bill introduced by Senator Cynthia Lummis, which proposes to establish a Bitcoin strategic reserve and authorize the US Treasury Department to acquire 1 million Bitcoins within five years.
Cryptocurrency enthusiasts such as Bitcoin Magazine CEO David Bailey support the concept. Bailey believes Bitcoin can solve the U.S. national debt within a few years. But financial experts remain skeptical. They believe this will only be feasible if Bitcoin’s market capitalization exceeds $35 trillion.
Trump’s Views on Bitcoin and the U.S. Economy
At the same time, Trump made the above remarks after delivering a keynote speech at the Bitcoin 2024 conference in Nashville, where he believed that the role of digital assets in the U.S. economy should become more important. His speech highlighted the growing interest in the cryptocurrency space and its potential benefits.
The debate comes as Trump’s chances of winning the presidential election have dropped to 54% from a high of 72% in July. His main rival, Vice President Kamala Harris, recently came into the spotlight when she received her first major cryptocurrency executive endorsement from Uphold co-founder JP Theriot.
