Big News: Washington Accused of Using Crypto to Escape $37 Trillion Debt Burden

The post Big News: Washington Accused of Using Crypto to Escape $37 Trillion Debt Burden appeared first on Coinpedia Fintech News

Anton Kobyakov, a senior advisor to Russian President Vladimir Putin, said that the United States is preparing to use cryptocurrency to wipe out its $35 trillion national debt.

Speaking at the Eastern Economic Forum in Vladivostok on Monday, Kobyakov alleged that the US is “trying to rewrite the rules of the gold and cryptocurrency markets.” His comments imply that the US is trying to convert a portion of its national debt into stablecoins to get rid of the debt. But he warns that the strategy could have significant implications for global financial stability. 

Kobyakov also implied that the US dollar is slipping in its reliance and losing confidence, and that is why the nation is leaning on alternative assets. He believes that the US is betting its stake in crypto and gold to handle the debt while maintaining economic value. 

He said, “Remember the size of their debt, 35 trillion dollars. These two sectors are essentially alternatives to the traditional global currency system. Washington’s actions in this area clearly highlight one of its main goals to urgently address the declining trust in the dollar.”

Kobyakov’s Warning Against US Strategy 

As per the US Treasury data, the nation’s debt has crossed $37 trillion now, which stood at $18.5 trillion ten years ago. Since 1981, the nation has seen a tenfold increase in its debt. Kobyakov argues that the nation is attempting to solve its problem at the world’s expense. 

He also noted that the US debt will soon be shifted into USD stablecoins and warned that this would push the world into what he calls the “crypto cloud.” 

Kobyakov then highlighted that the US has a history of debt issues, as he reminded that the government was pushed to take unusual steps in the 1930s during the Great Depression. He said, “As in the 1930s and the 1970s, the US plans to solve its financial problems at the world’s expense.” 

What Are US Officials Saying About This?

Interestingly, the US has never explicitly denied that its evolving crypto framework is a way out of its national debt. In fact, in June, when the stablecoin bill “GENIUS Act” was in preparation, Scott Bessent, Secretary of the Treasury and a supporter of the bill, claimed that the bill would help reduce national debt.