Russian Advisor Suggests US Could Use Crypto to Erase National Debt

TLDR

• Putin’s advisor claims the US is planning to use crypto to address its $35 trillion debt.
• The US could use stablecoins to “devalue” debt and reset the global financial order.
• The growing loss of confidence in the US dollar fuels the potential shift to crypto.
• Russia is exploring stablecoins tied to the ruble, moving in a similar direction.

At the Eastern Economic Forum, Anton Kobyakov, a senior advisor to Russian President Vladimir Putin, made bold claims about the United States’ approach to its mounting national debt. Kobyakov suggested that the US might use cryptocurrencies, particularly stablecoins, to address its $35 trillion debt by reshaping the global financial system. He argued that this shift could be used as a way to “devalue” US debt and reset the global financial order in the US’s favor.

Kobyakov pointed out the growing loss of confidence in the US dollar, which has fueled discussions about alternative financial mechanisms. The advisor speculated that stablecoins could serve as a vehicle to “stash” part of the US debt, eventually allowing the country to reduce the burden of its national debt. This plan, according to Kobyakov, could come at the expense of countries that still rely heavily on the dollar for their financial systems.

Stablecoins and Crypto Cloud as Debt Solutions

Kobyakov’s comments centered on the idea that the US could move part of its national debt into digital assets, particularly stablecoins. He suggested that by transferring debt into what he called a “crypto cloud,” the US could then devalue the debt and “start from scratch.”

This theory highlights the growing role of stablecoins and cryptocurrencies in global finance, and how they could be used to manipulate financial markets in favor of large economies.

“Over time, when part of the US government debt is placed in stablecoins, the US will devalue this debt,” Kobyakov stated. This process, according to the advisor, would not only address the immediate debt crisis but also create a new, more flexible financial system that bypasses traditional methods of debt management.

Historical Parallels and Potential Market Shifts

Kobyakov drew comparisons between the current financial climate and past moments in US history, such as the 1930s and 1970s, when the US government took extraordinary measures to deal with economic pressures.

These historical precedents, according to Kobyakov, suggest that the US is once again preparing to resolve its financial issues in a way that may impact the global economy.

If the US were to adopt such a strategy, it could potentially lead to significant market shifts. The use of cryptocurrencies for national debt could weaken the global dominance of the US dollar, as countries might be hesitant to rely on the dollar if digital assets or gold are seen as more stable alternatives. This move could also reshape how governments and institutions globally manage national finances.

US Moves Toward Digital Assets and Crypto Frameworks

Kobyakov’s comments align with recent developments in the US, where there has been increased focus on cryptocurrencies and stablecoins. US regulators have been working on clearer frameworks for digital assets, with some government officials suggesting that cryptocurrencies could be used as part of national reserves.

For example, Treasury Secretary Scott Bessent has expressed interest in selling government bonds through stablecoins, while President Trump has indicated support for using crypto to address national debt.

These discussions have raised questions about the future role of cryptocurrencies in government finance. While there is no definitive evidence of a plan to offload US debt using crypto, the growing interest in blockchain and digital assets suggests that policymakers are seriously considering such ideas.

Russia’s Parallel Exploration of Digital Assets

While Kobyakov was critical of the US’s potential strategy, Russia has been exploring similar paths. Russia has been developing stablecoins tied to the ruble and investigating ways for wealthy citizens to engage with digital currencies.

These moves reflect a broader trend in which both Russia and the US are preparing for a future where digital assets play a central role in global finance.

Kobyakov’s remarks also suggest that Russia sees the use of digital assets as a means to strengthen its financial system, especially in light of international sanctions and pressure. The growing interest in stablecoins and cryptocurrencies in both Russia and the US could signal a larger shift in how major economies handle their financial systems and national debt.

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