# The "encryption solution" of 38 trillion U.S. debt: What is Trump hinting at?

**On October 22, U.S. national debt surpassed 38 trillion dollars.** This is not just a number, but a prelude to a financial crisis.

Even more explosive, Trump said at the press conference: "Has the dollar been overissued? Then let's use encryption to pay off the debt."

Sounds like a joke. But if you think deeper, it could be a clear signal.

# # 38 trillion debt trap

First, let's look at the data:

**Debt Scale**: $38.01 trillion (a record high)

**Interest Burden**: Annualized at $1.3 trillion, accounting for 4.2% of GDP—this has already exceeded the US defense budget ($895 billion).

**Debtor Country Distribution**: Japan 11.7 trillion, China 771 billion, other countries 2.9 trillion.

Understanding from a different perspective: The U.S. government spends enough on interest payments each year to buy the entire market value of Bitcoin twice. Each American has an average debt of $110,000, and the average household debt is $287,000.

Michael Peterson, the chairman of the Peterson Foundation, made a poignant statement: Over the past decade, the U.S. has spent $4 trillion on interest, and in the next decade, it will need to spend $14 trillion. **This will directly squeeze public investments in healthcare, education, infrastructure, and more.**

# # Why is Trump talking about encryption currency?

Traditional solutions (printing money, raising taxes, issuing bonds) have become ineffective. In the face of uncontrollable deficits, the United States needs new ideas.

At this point, the three characteristics of Bitcoin suddenly became highly strategic:

- **Scarcity**: A cap of 21 million coins, cannot be overissued.
- **Global Liquidity**: Bypass the US dollar for direct cross-border transactions
- **Depoliticization**: Not relying on any central bank credit

**What is the core of Trump's "encryption solution"?** It's not really about using cryptocurrency to pay off debts (that would be ridiculous), but rather:

**Some government bonds are linked to digital assets; diversification of national reserve assets (holding BTC/ETH); promoting the "U.S. version of sovereign encryption assets" pilot.**

This is not a fantasy. A report from Republican economic advisors clearly mentioned: "In the next five years, the U.S. Treasury could link part of the national debt revenue to the digital assets market to hedge against inflation."

# # Bitcoin is becoming "the new gold of America"

There is a key logic here:

**BTC Total Market Cap: 2 trillion USD**

**U.S. Treasury Debt Size: $38 trillion**

As long as 5% of the funds from U.S. Treasury bonds flow into the BTC market, Bitcoin can soar more than 5 times.

And the United States has quietly laid out its plans through institutions:

- BlackRock's Bitcoin ETF has held 800,000 BTC.
- Fidelity has included BTC in its corporate retirement plan
- Some states (Texas, Wyoming) allow paying taxes and reserves with bitcoin.

**The United States does not need to officially announce its holdings of BTC; it has already become the world's largest Bitcoin reserve country through ETFs and institutional reserves.**

At the same time, the United States also controls: the world's major Bitcoin ETFs, the largest encryption exchange Coinbase, and the most mining hardware manufacturers.

This means: Bitcoin will not undermine the dollar hegemony, but rather **a new form of dollar hegemony in the digital age**.

# # Blueprint for the New Reserve System

The future may be like this:

**Gold (credit base) + US Treasuries (liquidity) + Bitcoin (digital collateral) = New Bretton Woods System 2.0**

This is a bold gamble by the United States in the debt crisis: using the "scarcity" of encryption assets to rebuild trust in U.S. finances.

In other words, when Trump says "We pay our debts with encryption currency," he may be probing whether the world is ready to accept a digitized American financial empire.

**The end of 38 trillion U.S. debt may be the starting point for encryption currency.**