How the U.S. is Using Crypto and Gold to Erase $37 Trillion in Debt Without You Noticing

The claim that the U.S. is secretly using crypto and gold to erase its $37 trillion debt is a conspiracy theory without basis in official U.S. government policy. The theory has primarily been circulated by Russian state media and some crypto proponents.

Origin of the Theory

The idea stems largely from comments made by Anton Kobyakov, an advisor to Russian President Vladimir Putin, who accused the U.S. of planning to “rewrite the rules” of gold and cryptocurrency markets to devalue its debt. He suggested the U.S. might move its debt into stablecoins and then devalue them, essentially defaulting on its obligations at the world’s expense.

Why the Theory is Unfounded

No Official Plan: The U.S. Department of the Treasury has not announced any plan to use gold or cryptocurrency to erase the national debt in this manner. U.S. debt consists of legal contracts (Treasury securities) held by a variety of investors, including U.S. citizens, foreign governments, and institutions; these obligations cannot simply be relabeled or defaulted on without triggering a global financial crisis and destroying trust in the dollar.
Insufficient Value: The total market capitalization of all cryptocurrencies, including Bitcoin, is a mere fraction of the U.S. national debt, which has now surpassed $38 trillion. Even if the U.S. government acquired all the world’s Bitcoin, it would not be enough to cover the debt, and any large-scale government buying or selling would crash the market.
Stablecoin Mechanism: Stablecoins are generally issued by private companies and backed by reserves, primarily U.S. Treasuries, not the U.S. government itself. Their function is to increase demand for U.S. debt, not provide a mechanism to erase it.
Political Rhetoric: Some U.S. politicians, such as Senator Cynthia Lummis, have proposed leveraging U.S. gold reserves to buy Bitcoin as a long-term investment strategy to potentially grow a reserve over decades, but this is a policy proposal for future investment, not a current plan to “erase” the existing debt. President Trump has also made campaign-trail comments about using crypto to pay down the debt, which analysts have widely debunked as economically unfeasible.

The U.S. government continues to finance its operations through traditional means, and official policy discussions focus on fiscal reforms, spending reductions, and tax policies to address the national debt, not using alternative assets to magically wipe it out.

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