TechFlow news — On December 21, CryptoQuant CEO Ki Young Ju stated that using a Bitcoin strategic reserve to offset U.S. debt is a viable approach. Over the past 15 years, $790 billion in real capital inflows have driven Bitcoin's market capitalization to $2 trillion. This year alone, $352 billion in inflows increased its market cap by $1 trillion.
However, using a withdrawable asset like Bitcoin—rather than gold or the U.S. dollar—to offset dollar-denominated debt may make it challenging to gain consensus among creditors. For Bitcoin to achieve broader market recognition, it must attain global and national standing comparable to gold. Establishing a Strategic Bitcoin Reserve (SBR) could serve as a symbolic first step.
Since 70% of U.S. debt is held domestically, it would be feasible for the U.S. government to designate Bitcoin as a strategic asset and purchase 1 million bitcoins by 2050 to offset 36% of its debt. While foreign entities holding the remaining 30% of debt might resist this approach, the plan does not rely on repaying all debt with Bitcoin, making the strategy practical.
Earlier reports, Senator Cynthia Lummis recently said the purpose of a strategic Bitcoin reserve is “to clearly and strategically repay the government debt hanging over every American.”
