US could reduce debt by 36% with strategic bitcoin reserve.

Major asset management firm VanEck recently predicted that the United States could reduce its national debt by 36 percent by 2050 and hold a strategic bitcoin reserve.

The initiative aligns with Senator Cynthia Lammis' Bitcoin Act, which calls for the United States to stockpile 1 million bitcoins over the next five years. Such a reserve, the legislature said, would place future generations on a financial footing free from uncollected or unused debt.

How Bitcoin Reserves Will Change US Debt Management in 2050

VanEck's analysis supports this strategy, saying such investment could reduce the national debt by an estimated $42 trillion by 2049.

In this scenario, Bitcoin's value will reach over $42 million, making it a major player in the global financial arena by 2049.

Adding 7.0% of today's $900 trillion total global financial assets from 2025 – 2049, Bitcoin will represent 18% of global financial assets by 2025 – 2049,” the firm added.

Matthew Siegel, head of research at VanEck, emphasized Bitcoin's role in shaping the global financial landscape. He suggested that bitcoin could become a leading settlement currency in global trade – offering an alternative to the US dollar – particularly for countries seeking to avoid US sanctions.

“Bitcoin will most likely be used more widely as a settlement currency for international trade by countries seeking to avoid increasing sanctions against the USD,” Siegel said.

To begin this ambitious project, VanEyck recommends several preliminary steps, including halting the sale of bitcoins from US assets.

Additionally, they suggest adjustments may be made by President Donald Trump's incoming administration, such as rebalancing gold certificates at current market rates and using the Exchange Stabilization Fund to make initial bitcoin purchases.

Of course, these measures will help build the reserve quickly without waiting for broad legislative approval.

However, the idea has created some doubts. Venture capitalist Nick Carter questions whether Bitcoin's reserves really support the US dollar. Meanwhile, Peter Schiff has proposed an alternative to create a new digital currency called USACoin.

“The US could save a lot of money by creating USAcoin. Like Bitcoin, the supply could be capped at 21 million, but with an improved blockchain to allow USAcoin to be used for payments,” Schiff pointed out.