MicroStrategy Chairman Michael Saylor has proposed a “Digital Asset Framework,” advocating for the establishment of Bitcoin reserves to offset national debt. In response to this issue, CryptoQuant founder Ki Young Ju expressed agreement and pointed out that if the US plans to purchase one million BTC by 2050, it could reduce national debt by 36%, but the acceptance by foreign creditors still poses challenges.
The most faithful believer in Bitcoin, Michael Saylor, Chairman of the US-listed company MicroStrategy, released the “Digital Asset Framework” today on the X platform. He stated that developing a strategic digital asset policy can not only consolidate the position of the US dollar and alleviate national debt pressure but also enable the United States to take a global leadership position in the 21st-century digital economy. This will promote corporate development, drive economic growth, and create trillions of dollars in economic value.
Michael Saylor: Establish Bitcoin reserves to offset national debt
Michael Saylor’s digital asset framework discusses the opportunities and US leadership in digital assets from five core perspectives. In terms of “opportunities,” he mentioned that establishing Bitcoin reserves could create $16 trillion to $81 trillion in wealth for the US Treasury, providing a way to offset national debt. In addition, he proposed the following three core opportunities:
1. The US dollar becoming the global reserve digital currency: This will drive the digital currency market from $25 billion to $10 trillion, creating a huge demand for US Treasury bonds.
2. Expansion of the digital capital market: The global digital capital market is expected to grow from the current $2 trillion to $280 trillion, and US investors will benefit greatly from it.
3. Leadership in digital assets: This will drive the market size of digital assets (not limited to Bitcoin) from $1 trillion to $590 trillion, making the United States dominate the industry.
Other issues in the digital asset framework
In addition to “opportunities,” Michael Saylor’s framework also covers the following key issues:
1. 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.
2. Legitimacy: Emphasizing the rights and responsibilities of issuers, exchanges, and holders, including fair disclosure, asset protection, and compliance with laws, to ensure the trust and integrity of market participants.
3. Utility: Simplifying the compliance process for digital assets, reducing bureaucracy and costs, supporting market-oriented innovation, and improving efficiency and innovation through standardized disclosure and industry-led compliance.
4. Vision: Promoting a “renaissance” in the US capital market, reducing issuance costs, expanding market access, and allowing more small and medium-sized enterprises, artists, and brands to raise funds through tokens, creating trillions of dollars in value.
CryptoQuant Founder: Offset US debt with Bitcoin is feasible but challenging
The use of Bitcoin reserves to offset a country’s debt has been widely discussed. In response, CryptoQuant founder Ki Young Ju stated in a post on the X platform that including Bitcoin in strategic reserves to offset US debt is a feasible approach. He stated:
In the past 15 years, Bitcoin has attracted a cumulative capital inflow of $790 billion, driving its market cap to exceed $2 trillion. This year alone, with only $352 billion in inflows, its market cap has increased by $1 trillion.
However, Ki Young Ju also pointed out that using assets with higher volatility like Bitcoin to offset US debt may face challenges in forming consensus among creditors, compared to gold or the US dollar.
To gain broader acceptance in the market, Bitcoin needs global recognition and national-level authority comparable to gold. Establishing a “Strategic Bitcoin Reserve” (SBR) may serve as a symbolic first step.
Ki Young Ju added that currently, 70% of US Treasury bonds are held domestically. Therefore, if the government defines Bitcoin as a strategic asset and plans to purchase one million BTC by 2050, it could potentially 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.