Author
Sujha Sundararajan
Author
Sujha Sundararajan
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Anton Kobyakov, a senior adviser to Russian President Vladimir Putin, made a bold claim that the US is preparing to use crypto to wipe out its massive $35 trillion national debt.
Speaking at the Eastern Economic Forum in Vladivostok on Monday, he alleged that the US is “trying to rewrite the rules of the gold and cryptocurrency markets.”
Remember the size of their debt — $35 trillion. These two sectors are essentially alternatives to the traditional global currency system,” Kobyakov said.
Per the US Treasury data, the nation’s debt is more than $37 trillion now, which stood at $18.15 trillion ten years ago. The nation has seen a 10-fold increase in its debt since 1981.
Further, he stated that Washington is attempting to solve its financial problems at the world’s expense. The nation’s debt will eventually be shifted into USD stablecoins to devalue it, he noted. This will ultimately shrink what it owns, allowing the US to “start from scratch,” Kobyakov added.
He warned that this would push the world into what he calls the “crypto cloud.”
The US Has a History of Debt Issues – Kobyakov Draws Historical Parallels
According to Kobyakov, the current crisis is similar to two earlier resets in U.S. monetary history. The government was pushed to take unusual steps in the 1930s during the Great Depression.
He also highlighted President Nixon’s 1970s decision to end the dollar’s final link to gold.
“As in the 1930s and the 1970s, the US plans to solve its financial problems at the world’s expense,” he said, per a translated transcript.
Kobyakov believes that today’s tools might just be serving an old goal with a modern twist, if the past is any guide.
The US is Building Crypto Frameworks
The US has been laying out rules for digital assets, with officials floating the idea of holding crypto as part of national reserves.
For instance, Senator Cynthia Lummis said in May that Bitcoin “is the only solution” to the US’s $36 trillion debt. She promoted the BITCOIN Act, which urges the government to buy 1 million Bitcoin in the next five years and hold it for 20 years.
Besides, US officials note that the stablecoin framework will focus more on ensuring that the USD remains a dominant currency.
Scott Bessent, Secretary of the Treasury and a supporter of the GENIUS bill, has claimed it could help reduce the national debt.
However, the debate is that it might have an opposite effect on the national debt. Stablecoins would increase demand for Treasuries, which means more debt issuance.
