Former President Donald Trump has suggested using Bitcoin or a “crypto check” to address the United States’ staggering $35 trillion national debt.
During an interview on Fox News, Trump, the Republican Party’s 2024 presidential nominee, praised the crypto industry and warned that America must innovate in the digital asset space to keep pace with other countries.
He even highlighted the potential role of Bitcoin in resolving the national debt crisis.
“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,” he stated.
US Government Faces Mounting Debt
The former president’s proposal comes at a time when the US government is facing significant challenges due to its mounting debt.
The continuous devaluation of the dollar, driven by excessive currency printing to service outstanding debts, has contributed to Bitcoin’s rising value relative to fiat currency.
To illustrate the gravity of the situation, it took around 200 years for the US national debt to reach $1 trillion.
Today, the same amount is added to the debt approximately every three months due to deficit spending.
In June, about 76% of all income tax revenue was used to pay interest on the debt, making it one of the largest expenses in the US fiscal budget.
Bitcoin, with its supply-capped nature, could potentially siphon value from the current US dollar system, thereby averting a full-blown currency collapse similar to the Weimar Republic in the early 20th century.
Here’s the FULL clip of Trump saying we’ll pay off the National Debt with Bitcoin. It gives a little more context.
“It’s bigger than any company in the world already…we might as well be the leader.” pic.twitter.com/ZfYdb8rEMD
— Cory Bates (@corybates1895) August 3, 2024
Independent presidential candidate Robert F. Kennedy Jr. has also echoed this sentiment, suggesting that establishing a Bitcoin reserve could help the government pay off its national debt as Bitcoin appreciates in value.
Lummis Proposes Bitcoin as Strategic Reserve
Moreover, Senator Cynthia Lummis has introduced a bill to establish a Bitcoin strategic reserve in the United States.
The initiative aims to counteract the negative effects of rampant monetary printing and preserve the US’s financial dominance in global markets and trade.
The Wyoming Senator has proposed that the US Treasury acquire 5% of Bitcoin’s total supply and hold the decentralized asset for at least 20 years as a safeguard against monetary devaluation by the Federal Reserve and poor fiscal policy.
Notably, Trump’s stance on cryptocurrencies has evolved over time.
Despite previously criticizing Bitcoin as a “scam,” he has recently changed his tune.
On June 14, he declared that he would end the Biden administration’s “war on crypto” if elected president.
Trump had also previously criticized Biden for his harsh stance on cryptocurrencies, emphasizing that the United States should strive to be a leader in the crypto industry.
As reported, a survey conducted by the Harris Poll has revealed that one in three voters in the US consider a candidate’s position on cryptocurrencies before making their voting decision.
Another survey conducted by leading crypto venture capital firm Paradigm reveals that Trump’s poll numbers for the 2024 US Presidential Election enjoy significant support from the crypto community.
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