TechFlow, April 1 — According to The Block, on April 1, 2025, the Bitcoin Policy Institute proposed an innovative fiscal instrument called "BitBonds," aimed at implementing President Trump's executive order on a strategic bitcoin reserve signed in March. These bonds would attract investors with a low interest rate of 1%, which is 3.5% lower than traditional Treasury yields. Ninety percent of the revenue generated would fund government operations, while 10% would be allocated to purchasing bitcoin.
Experts estimate that issuing $2 trillion in BitBonds—approximately 20% of the refinancing needs in 2025—could save $70 billion annually in interest expenses, totaling $700 billion in savings over ten years, all while expanding the U.S. bitcoin reserves without imposing additional burdens on taxpayers. The proposal is seen as an innovative solution to address the challenge posed by the upcoming maturity of $9.3 trillion in short-term U.S. debt.
