The United States faces a serious financial challenge. National debt now exceeds $ 36,000 billion and the increase in interest rates makes money more expensive. Much of the debt issued during Era Covid-19 comes early, which means that it must be improved at much higher rates of today.
In short
- The United States faces massive debt and increase in interest costs, with few remaining traditional solutions.
- Bitbonds are a new idea that combines the duties of the Treasury with Bitcoins to attract more buyers and reduce the cost of the loan.
- They offer a further increase in the further risk of taxpayers and can help legitimize bitcoins in this process.
Bitcoin obligations as a solution
If nothing changes, taxpayers will find themselves to pay hundreds of billions of other dollars every year. However, it may happen that a new surprising idea can help: Bitcoins or Bitbonds have improved pieces of the Ministry of Finance.
This idea comes from Matthew Pines, director of the Bitcoin Political Institute. Its proposal is simple: when the United States issues new obligations, it could reserve a small part of the funds, say 1 to 10 %, buy bitcoins.
Some of this bitcoin would be placed in a long -term government reserve. Over time, the rest would be distributed to people who buy a commitment and offer them a mixture of stable revenues of duty, the more the potential for the growth of bitcoins.
Why it? Because it could increase the demand for American bonds. With higher demand, the government would not have to provide such high interest rates to attract the buyer. This could allow significant savings.
This could also send a powerful signal. If the US government begins to buy and has bitcoins, it would show that bitcoins consider a long -term legitimate asset. This could strengthen the trust in bitcoins and potentially increase its price, which would benefit the government, as well as for the Bitbond investors.
What is the risk?
Pine suggests that the risk is limited. If the value of bitcoins decreases, the holder of the obligation will still obtain the same return as the normal obligation of the Ministry of Finance. If Bitcoin is rising, they will receive a bonus. It is like a normal duty, but with an optional added value.
Bitbonds would not replace the current financial system, it would be a new tool that the government could try. Pines recommend from the pilot program to see how investors react.
It’s a bold idea. But with the debt that increases, global tensions and limited political possibilities, Bitbonds could offer something rare: a means of reducing credit costs, supporting financial innovation and mitigating long -term pressure without raising taxes or reducing expenses.
And if it works, the idea could attract a lot of capital to bitcoins, which is a moment when it could be expected to explore the same principle with other cryptocurrencies such as XRP and Ethereum.
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Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.
(Tagstotranslate) United States BTC