What if the United States could use a Bitcoin reserve to erase its national debt? Bitcoin advocate Michael Saylor proposes this bold idea in a Dec. 21 post. He shared a Digital Assets Framework that he claims could generate up to $81 trillion for the US Treasury. The framework aims to strengthen the dollar and position the US as a global leader in the digital economy.
Here is a breakdown of how Saylor’s audacious Bitcoin reserve plan works and why it is causing controversy.
The $81 Trillion Bitcoin Plan
Saylor’s plan centers on acquiring a strategic Bitcoin reserve. He claims this reserve could generate $16 trillion to $81 trillion for the US Treasury, offering a way to reduce the national debt. He argues that a strong digital asset policy would boost the US dollar and position the country as a leader in the 21st-century digital economy.
Source: X
Under his leadership, MicroStrategy has accumulated over 439,000 Bitcoins, valued at over $41 billion. This massive Bitcoin reserve has boosted the company’s stock and positioned Saylor as a leading voice in the crypto world.
The Framework in Detail
Saylor’s proposal organizes digital assets into six categories. These include Bitcoin as a virtual and digital commodity, digital securities, and digital currencies. It also covers digital tokens, NFTs, and asset-backed tokens. To avoid ambiguity, every category would have regulations for issuers, exchanges, and owners to follow.
Therefore, one of the major concepts is seeking to reduce the cost of compliance. For instance, Saylor recommends compliance costs for issuing tokens not to exceed 1% of AUM and for maintaining tokens, not more than 0.1% per annum. The goal? This shift emphasizes reducing bureaucracy. It aims to foster innovation and improve efficiency in project management. This will take the guesswork out of what to do to stay compliant.
Source: X
Saylor believes the framework could unlock trillions of dollars in value. It would reduce the cost of asset sales and give millions of businesses access to markets. He envisions the US dollar becoming the world’s top digital currency, backed by a thriving global digital capital market.
Many other big economic and investment voices oppose Saylor’s vision of building up Bitcoin reserves in MicroStrategy’s balance. Economist and Bitcoin critic Peter Schiff dismissed the idea as “complete nonsense.” He argued that it would depreciate the dollar and worsen the national debt.
This is complete bullshit. The proposal would do the opposite. It would weaken the dollar, exacerbate the national debt, and making America a laughing stock. It would deprive business of power, diminish growth, and destroy value.
— Peter Schiff (@PeterSchiff) December 20, 2024
Conclusion
Some may dismiss Saylor’s idea of a Bitcoin reserve as unrealistic. However, it highlights the growing role of crypto in shaping the world economy. If the US adopted such a plan, it could change how we view national debt, innovation, and money in the future. Only time will tell if this bold vision indeed becomes a reality.
Disclaimer
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