Asset manager VanEck expects the United States to reduce its national debt by a staggering 36% if the country adopts Bitcoin as a reserve currency.
US President-elect Donald Trump has described Bitcoin as the cryptocurrency of the future. Remarkably, he did it often teased Using Bitcoin to pay the growing national debt.
Other Bitcoin supporters in the US also share a similar opinion. By comparison, Senator Cynthia Lummis has argued that the leading crypto asset would enable a debt-free America and provide a better economic environment for future generations.
Amid these discussions, billionaire asset manager VanEck has published a template showing the impact of Bitcoin adoption on national debt. According to a recent reportThe US could use Bitcoin to reduce up to 36% of its deficit over the next 26 years.
Pros and Cons of Bitcoin Strategic Reserve
VanEck’s analysis depends on Senator Lummis’s Bitcoin law billwhich proposes purchasing 1 million Bitcoins over five years. The asset manager noted that the U.S. could fund the purchases through executive action while legislative deliberations are underway.
The leading asset manager also emphasized that the US could hold the first 200,000 tokens through confiscated Bitcoins. The purchase of the remaining 800,000 tokens could come through a revaluation of the country’s $693 billion gold reserves and possibly through the release of capital through his sales. In addition, the purchase could also be made from the $49.7 billion Exchange Stabilization Fund (ESF) approved by the Finance Minister.
Meanwhile, VanEck noted that if Bitcoin rises 25% annually from its base price of $200,000 in 2025 and…
