Former President and Republican Presidential candidate Donald Trump is reportedly considering Bitcoin as a solution to the US National debt crisis.
According to an audio recorded by the Bitcoin.com News team, Bitcoin Magazine CEO David Bailey shared during an X space that in their first meeting, Trump asked if Bitcoin could help tackle the $35 trillion U.S. national debt.
In his words,
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“When we met, the first thing he asked was like, ‘Hey, can Bitcoin do anything about the 35 trillion dollar debt?’ I was like, we have some ideas, but we are not talking about that in the first meeting”.
Trump’s consideration of Bitcoin as a solution to the US national debt crisis, is coming at a time when the US faces a challenging fiscal outlook that has been predicted to worsen in times ahead.
Reports reveal that the amount of money that the US Treasury has borrowed and not yet repaid to meet its spending obligations has reached a record $34.1 trillion. Government spending also exceeded government revenues by $1.7 trillion in Fiscal Year 2023.
The cost of servicing the national debt is also projected to grow to historic levels over the next decade because of higher spending and higher interest rates, which makes financing additional debt more expensive and further exacerbates the Debt Crisis.
The debt-to-GDP ratio shows the burden of the national debt relative to the country’s total economic output and reveals the United States’ ability to pay down its debt. Public debt stands today at its highest level since World War Il by 99 percent and is projected to grow even higher in the next decade.
Trump’s interest in using Bitcoin as a solution to cater to the US national debt, highlights a broader trend of increasing attention to digital currencies among policymakers. This interest underscores the need for a deeper examination of how cryptocurrencies could be effectively integrated into national economic policies.
The crypto asset has gained prominence for its decentralized nature, limited supply, and potential to serve as a hedge against inflation. However, analysts argue that its volatile price and regulatory uncertainties present significant challenges. They also state that integrating Bitcoin into national financial strategies could promote innovation and financial sovereignty, while critics caution against the risks associated with such a volatile and largely unregulated asset.
Trump’s support for Bitcoin and cryptocurrency marks a notable departure from his previous skepticism and reflects the growing influence of digital currencies in politics.
While speaking at the Libertarian National Convention on 25 May 2024, he said,
“I will ensure that the future of crypto and the future of Bitcoin will be made in the USA, not driven overseas”.
This initiative may normalize the utilization of cryptocurrencies in mainstream politics and signal a shift toward the wider acceptance of digital assets.