Donald Trump Sees Bitcoin as a Solution to US National Debt

Bitcoin could become a key tool in addressing the growing US national debt, which has surpassed $35 trillion, according to Donald Trump, the Republican presidential candidate, in an interview with FOX News.

Trump with a word salad about crypto: “Crypto is a very interesting thing. Very high level in certain ways. Intellectually very high level. But if we don’t do it China’s gonna do it … who knows — maybe we’ll pay off our $35 trillion, hand them a little crypto check, right?” pic.twitter.com/eaxuFNI6fO

— Aaron Rupar (@atrupar) August 2, 2024

The politician suggested the possibility of using digital gold to reduce the national debt.

“Cryptocurrencies are a very interesting thing. […]. If we don’t do it [become leaders], China will. […] Maybe we’ll pay off our $35 trillion, hand them a little crypto check? We’ll give them some bitcoins and settle the obligations?”, proposed Trump.

The presidential candidate’s comments expanded on his policy speech at the Bitcoin2024 conference a week earlier, where he advocated for a more prominent role for digital assets in the US economy.

The idea of using Bitcoin to reduce the national debt is also a central part of the Bitcoin Act, introduced by Senator Cynthia Lummis.

In the FOX News interview, Trump emphasized the growing global significance of digital gold as its market capitalization rises to levels comparable to silver. He noted that the first cryptocurrency has become “bigger than any company in the world” in just over a decade.

Trump highlighted the vast scale and economic impact of Bitcoin.

“If you look at the market, it’s bigger than many countries. It’s a huge thing”, he explained.

According to the presidential candidate, countries will inevitably adopt the first cryptocurrency, and the US should become a key player in this matter.

“If we don’t adopt it, other countries […] will still implement it. We can become leaders”, assured Trump.

In his view, the US has all the necessary talents and resources for this. 

The former president also criticized the Biden administration’s approach to cryptocurrency regulation. He suggested that it lacks the necessary understanding to effectively manage the sector. The current loose regulatory framework has been one of the factors in the rapid growth and success of digital assets. This dynamic should be maintained, Trump added.

Peter Schiff, President of Euro Pacific Capital, reacted skeptically to the politician’s interview.

If #Trump really intended to use seized #Bitcoin to start a U.S. “strategic” reserve, he’d have kept his intention a secret until he was actually in office. Now that the #Biden administration is wise to his plan, they’ll make sure to sell every Satoshi before Trump takes office.

— Peter Schiff (@PeterSchiff) July 29, 2024

“If he really intended to use seized bitcoins to create a US strategic reserve, he would have kept it a secret until taking office. Now that the Biden administration is aware of such plans, its representatives […] will sell all the satoshis before the Republican takes office”, commented the expert.

On the prediction platform Polymarket, Trump leads in a head-to-head race against Democratic opponent Harris, according to 54% of traders. 

Unlike the Republican candidate, the US Vice President has not publicly stated her stance on digital assets or a strategy regarding their regulation.

As reported in Bloomberg, Bitcoin companies are hopeful for Trump’s return to the White House.