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Treasury to issue $2 trillion in Bitcoin-enhanced bonds to offset debt, fund strategic reserve
A recent proposal suggests that the US Treasury may issue a whopping $2 trillion in Bitcoin-enhanced bonds to help offset the country’s mounting national debt and create a strategic reserve of digital assets. This bold move could potentially offer retail investors an alternative investment opportunity to cut national debt without relying on tax hikes.
According to sources, the proposal aims to enhance the value of these bonds by incorporating Bitcoin (BTC) as collateral. By doing so, the Treasury would not only generate revenue but also diversify its assets and reduce dependence on traditional currencies like the US dollar.
The potential benefits of such a move are significant:
1. **Diversification**: The inclusion of cryptocurrencies like Bitcoin would allow the US government to manage risk by spreading investments across different asset classes.
2. **Reduced dependency**: This move could diminish the influence of central banks and governments on currency valuation, as decentralized assets like Bitcoin are immune to inflation and monetary policy manipulation.
3. **Increased revenue streams**: The Treasury could generate additional income by selling these bonds to retail investors, potentially increasing the overall fiscal capacity.
However, critics argue that using a volatile asset like Bitcoin for this purpose would be premature and potentially risky. Some even suggest that it might undermine traditional financial systems.
The idea of using cryptocurrency-backed bonds has been discussed in academic circles and among experts. While it’s uncertain whether the proposal will become reality, it highlights the potential for innovative solutions to complex economic challenges.
Source: https://cryptoslate.com/tether-strengthens-bitcoin-portfolio-with-8888-btc-acquisition-sits-on-unrealized-profit-of-3-86-billion/
