The Bitcoin Policy Institute (BPI) has put forward an ambitious proposal that could revolutionize the way the US government manages its growing national debt. By integrating bitcoin into treasury bond instruments, the initiative aims to ease the financial burden while helping the US maintain its leadership in the digital asset space.
Bitcoin Bond Concept
The BPI proposal suggests that the US Treasury should issue debt instruments in which 90% of the proceeds would be used for government spending, while 10% would be allocated to buying bitcoin. This approach is in line with recent government moves to integrate digital assets, including the creation of a Strategic Bitcoin Reserve under a policy announced on March 6.
These bonds will have a maturity of 10 years, allowing investors to benefit from bitcoin's price appreciation. Specifically, bondholders will receive 100% of bitcoin's profits up to a threshold of 4.5%, with the excess profits split equally between investors and the government.
Potential Economic Impact
According to BPI, if $2 trillion in bitcoin bonds were issued (equivalent to 20% of the US's refinancing needs by 2025), the government could spend $200 billion to buy bitcoin. At a price of $90,000 per BTC, the US could accumulate about 2.2 million BTC for the strategic reserve.
Even if the price of bitcoin remains unchanged, the plan could still save the government about $354.4 billion over the next 10 years. Based on historical data on bitcoin's growth rate, the BPI believes that the government's profits could be enough to significantly reduce or even completely eliminate the burden of public debt for future generations.
Strategic Implications for the United States
The initiative reflects the growing interest of the U.S. government in digital assets. As former President Donald Trump recently established a national bitcoin reserve, many industry players are closely watching to see how regulatory policies will develop. The BPI argues that integrating bitcoin into public debt management could provide long-term financial sustainability while strengthening the U.S. position in the digital asset space.
If implemented, bitcoin bonds could become a reference model for other countries facing public debt problems. However, the proposal also raises important questions about regulatory oversight, market volatility, and the potential risks of integrating a decentralized asset into government finance.
As discussions about bitcoin’s role in the global economy continue, the BPI proposal marks a significant step toward widespread adoption of digital assets. Whether policymakers embrace this bold initiative remains to be seen, but its potential implications could reshape the future of U.S. financial strategy.
