Trump’s Stablecoin Gamble: US to Shift Its $35 Trillion Debt Into Crypto?

In July, U.S. President Donald Trump signed a landmark law regulating stablecoins — cryptocurrencies pegged to the U.S. dollar. Alongside this legislation, he announced plans to allow pension funds to invest in digital assets, signaling a new era of government-backed crypto integration.

Strengthening the Dollar Through Crypto

U.S. Treasury Secretary Scott Bessent praised the move, arguing that closer cooperation between the state and cryptocurrency markets would reinforce the dollar’s role as a global currency. He also noted that stablecoins backed by U.S. Treasury bonds could boost investor demand for government debt.

Rumors of a Debt 'Wipeout'

The announcement quickly fueled speculation that Trump was considering converting the country’s $35 trillion national debt into cryptocurrency — a scenario some believe could effectively erase it. Russian presidential advisor Anton Kobyakov expressed support for such a strategy, contrasting it with China and India’s decision to build gold reserves while distancing themselves from fiat currencies, according to Tsargrad.

Risks to Global Financial Trust

Economist Aleksey Zubets, director of the Center for Research and Social Economy, warned that transferring U.S. debt into crypto might look tempting amid the rising popularity and value of digital assets. However, he cautioned that it would have catastrophic consequences for the financial system by creating an alternative means of payment and destabilizing the balance of global markets. Most critically, he said, such a move would undermine creditors’ trust — a foundation on which the debt-driven U.S. economy has long depended.