Former President Donald Trump recently suggested an unconventional strategy to address the United States’ towering $35 trillion national debt: utilizing Bitcoin (BTC) or a “crypto check” as a potential remedy.

In a conversation with Maria Bartiromo on Fox News, Trump, the GOP’s 2024 presidential hopeful, extolled the virtues of the cryptocurrency sector. He reiterated his belief that America must lead in digital asset innovation to avoid being outpaced by other nations. Trump proposed Bitcoin’s potential role in mitigating 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.”

Bitcoin’s Role in Economic Restructuring

Trump’s assertion highlights the potential of Bitcoin, a supply-capped asset, to transform US dollar inflation into a stable, blockchain-based economic system. As the US government continues to inflate the currency to service existing debts, Bitcoin’s value relative to fiat currency rises.

To illustrate the gravity of the national debt: it took approximately 200 years for the US to accumulate $1 trillion in debt. Today, this amount is added to the national debt roughly every three months due to deficit spending. In June alone, about 76% of all income tax revenue was allocated to interest payments on the debt, underscoring the fiscal burden.

Read more: Trump Advocates for U.S. Bitcoin Sovereignty: Warns of Crypto Calamity Under Democratic Victory

Bitcoin as a Hedge Against Financial Collapse

Bitcoin, with its limited supply, offers a potential solution by gradually shifting value from the US dollar system to the decentralized digital asset, thereby averting a catastrophic currency collapse akin to the Weimar Republic’s early 20th-century hyperinflation. Presidential candidate Robert F. Kennedy Jr. echoed this sentiment in an interview with Cointelegraph, suggesting that a Bitcoin reserve could assist the government in repaying the national debt as BTC appreciates in value.

Legislative Efforts to Establish a Bitcoin Reserve

Senator Cynthia Lummis has introduced a bill advocating for the establishment of a Bitcoin strategic reserve in the United States. This initiative aims to counter the adverse effects of excessive monetary printing and to maintain the US’s financial supremacy in global markets and trade.

The Wyoming Senator’s proposal targets the US Treasury acquiring 5% of Bitcoin’s total supply. This decentralized asset would be held for at least 20 years as a safeguard against monetary devaluation by the central bank and imprudent fiscal policies.