MicroStrategy’s Chairman Michael Saylor proposes a “Digital Asset Framework” advocating for the establishment of a BTC reserve to offset national debt. On this issue, CryptoQuant’s founder Ki Young Ju agrees, stating that if the US plans to purchase 1 million BTC by 2050, it could reduce national debt by 36%, but foreign creditors’ acceptance remains a challenge.
Bitcoin’s most loyal believer, Michael Saylor, Chairman of the US-listed company and Bitcoin holder MicroStrategy, today released a “Digital Asset Framework” on X platform, stating that developing a strategic digital asset policy can not only consolidate the position of the US dollar and ease national debt pressure but also enable the US to take a global leadership position in the 21st-century digital economy—promoting business development, driving economic growth, and creating trillions of dollars in economic value.
Michael Saylor: Establishing a Bitcoin reserve to offset national debt
Michael Saylor’s digital asset framework explores opportunities for digital assets and US leadership from five core perspectives. On the “opportunity” front, he mentioned that establishing a Bitcoin reserve could create $16 trillion to $81 trillion in wealth for the US Treasury, providing a way to offset national debt. Additionally, he presented the following three core opportunities:
1. Making the US dollar the global reserve digital currency: Driving the digital currency market from $250 billion to $10 trillion, creating significant demand for US national debt.
2. Expansion of the digital capital market: The global digital capital market is expected to grow from the current $2 trillion to $280 trillion, with US investors benefiting significantly.
3. Leadership in digital assets: Driving the market size of digital assets (not limited to Bitcoin) from $1 trillion to $590 trillion, allowing the US to dominate the industry.
Other issues in the digital asset framework
In addition to “opportunities,” Michael Saylor’s framework also covers the following key issues:
– Asset classification: Defining types of digital assets, including “digital commodities” (such as Bitcoin), “digital securities,” “digital currencies,” “digital tokens,” “digital NFTs,” and “digital ABTs” linked to physical assets.
– Legitimacy: Emphasizing the rights and responsibilities of issuers, exchanges, and holders, including fair disclosure, asset protection, and compliance with laws, to ensure trust and integrity of market participants.
– Utility: Simplifying compliance processes for digital assets, reducing bureaucracy and costs, supporting market-driven innovation, and enhancing efficiency and innovation through standardized disclosures and industry-led compliance.
– Vision: Promoting a “renaissance” of the US capital market, reducing issuance costs, expanding market access, allowing more small and medium-sized enterprises, artists, and brands to raise funds through tokens, creating trillions of dollars in value.
CryptoQuant Founder: Offsetting US debt with Bitcoin feasible but challenging
The feasibility of using Bitcoin reserves to offset a country’s debt has been widely discussed. On this issue, CryptoQuant founder Ki Young Ju stated in a post on X platform that including Bitcoin in strategic reserves to offset US debt is a feasible approach. He said:
– Over the past 15 years, Bitcoin has attracted $790 billion in capital inflows, driving its market cap to surpass $2 trillion. This year alone, with just $352 billion in inflows, it added $1 trillion to its market cap.
– However, Ki Young Ju also pointed out that compared to gold or the US dollar, using a volatile asset like Bitcoin to offset USD debt may face challenges in forming consensus among creditors.
– To gain broader acceptance in the market, Bitcoin needs global recognition equal to that of gold and national-level authority. Establishing a “Strategic Bitcoin Reserve” (SBR) might serve as a symbolic first step.
– Ki Young Ju added that currently, 70% of the US national debt is held domestically, so if the government defines Bitcoin as a strategic asset and plans to purchase 1 million BTC by 2050, it could offset up to 36% of the debt.
– Although the remaining 30% of foreign creditors may not accept this proposal, the plan does not rely on settling all debt with Bitcoin, making the strategy somewhat feasible.