Is the United States Planning a $37 Trillion Crypto Reset?

Recent statements from Russian officials have ignited discussions about the United States' approach to its staggering $37 trillion national debt.

 

Anton Kobyakov, an adviser to Russian President Vladimir Putin, has alleged that the U.S. intends to utilize stablecoins and gold to devalue its debt, effectively allowing the nation to "start from scratch."

 

He suggests that by shifting debt into dollar-backed digital currencies, the U.S. could devalue its obligations, though the exact mechanisms remain unclear.

 

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In response to these claims, U.S. officials have emphasized that the primary goal of integrating stablecoins is to maintain the dollar's global dominance, not to devalue debt.

 

For instance, Treasury Secretary Scott Bessent stated in March that stablecoins are intended to ensure the dollar remains the world's leading currency.

 

Additionally, former House Speaker Paul Ryan highlighted that dollar-backed stablecoins could drive demand for U.S. debt instruments, potentially reducing the risk of financial crises.

 

Further fueling the debate, President Donald Trump signed an executive order in March 2025 to establish a government bitcoin reserve.

Question: How Debt Devaluation Actually Works

 

Let's break it down. Imagine the world only has $100 total. You borrow all of it. Now you owe $100 back, but you control the money supply.

 

Instead of paying back with the same $100, you just create another $100 out of thin air. Now the world has $200 chasing the same stuff.

 

What happens? 

 

• Prices go up everywhere 
• Food gets pricier 
• Houses cost more 
• Everything feels more expensive 

 

When you pay back the original $100, it looks like you paid in full. But that $100 only buys half as much as before. You diluted the money supply—classic inflation. 

 

This is how inflation works: more money chasing the same goods equals rising prices. The debt holder gets paid back with money that just doesn't go as far.

 

Past Examples of Debt Reduction Through Inflation

 

America's played this game before. It's not exactly groundbreaking.

 

Major historical examples:

1. After World War II
2. During the 1970s inflation crisis
3. After the 2020 pandemic response

 

Each time, America created new money to solve problems. This made everything more expensive, but it also made old debts easier to pay off with cheaper dollars.

 

During the pandemic, massive money creation led to higher prices for almost everything. Real estate, stocks, and groceries all got more expensive.

 

The natural state of an economy should be deflationary. 

 

Technology makes things cheaper over time; better production methods lower costs. But governments keep creating new money, fighting the natural trend toward lower prices. Instead of things getting cheaper, they get more expensive.

 

Scottsdale Crypto Trading Community folks keep an eye on these trends for good reason. 

 

When new money floods the system, it has to land somewhere. People put it into assets like:

 

• Real estate 
• Stocks 
• Gold 
• Bitcoin 

 

These assets hit "all-time highs", but it's not that they're suddenly more valuable. The dollar's just weaker; more dollars chasing the same things. 

 

How Money Creation Works And Weakens Currency Value

 

Why Printing More Money Causes Higher Prices

 

If you understand how debt devaluation works, you'll begin to see the real game. Imagine the world as a single $100 bill. You borrowed all of it, so you owe $100 back.

 

But here's the strategic move: instead of paying back with that same $100, you just print another $100. Now there are $200 in the world, but still the same amount of stuff to buy. What happens? 

 

• More money chases the same goods
• Prices climb everywhere
• Your debt number stays the same
• But that number buys less

 

This phenomenon occurred after World War II and again in the 1970s. It reemerged after the pandemic, too, when money printing sent prices through the roof. 

 

Economies should be deflationary. Technology and efficiency naturally make things cheaper. However, when governments print money, it results in needing more dollars to buy the same things. 

 

In today's rapidly shifting economic landscape, understanding the interplay between currency strength and asset values is crucial. Let's explore how asset values change when a currency loses its strength.

 

• Purchasing power: When the value of a currency decreases, your purchasing power is the first to take a hit. Imagine walking into a grocery store where yesterday you paid $1 and today you're paying $2 for the same item. The reason? The money supply has increased, but the goods haven't.

 

• Asset rush: All that new money inevitably needs a place to go. It pours into various assets that people believe will retain or grow in value, such as: 

 

Real Estate

Stocks

Gold

Bitcoin

 

While these assets appear to rise, the reality is that the currency is weakening, requiring more dollars to buy the same quantity or value.

 

• "All-Time Highs" Misconception: When you hear about assets reaching "all-time highs," it's often due to a weakening dollar, not because the asset itself is improving. The extra capital must find a place to grow or maintain its value to stay ahead of currency dilution.

 

• Savvy investors, especially Scottsdale Traders, are well-versed in these market dynamics, recognizing the crucial dance between assets and currency values. They know precisely where and when to allocate their resources to withstand currency fluctuations.

 

Stay informed and strategic about where you place your wealth to effectively shield it from the erosive impact of a weakening dollar.

 

How This Mirrors Earlier Financial Crises

 

You've seen this playbook before. The U.S. has been devaluing debt through inflation for decades. This isn't some new conspiracy theory.

 

• Historical examples:
• Post-WWII debt reduction through controlled inflation
• 1970s stagflation that wiped out debt burdens
• 2020-2022 money printing that sparked price hikes

 

Devaluing debt doesn't mean defaulting. You still pay back the full amount, but you pay with money that buys less than when you borrowed it.

 

The lender gets back their $100, but that $100 now only buys what $50 used to buy. You've basically cut your debt in half. This pattern repeats because, honestly, it works. The borrower wins. The lender loses purchasing power. Most people don't even realize what happened.

 

What's different now? The global reach. Stablecoins and crypto can spread this effect worldwide. When dollar-backed tokens circulate everywhere, currency dilution hits anyone holding those tokens, even folks in the Scottsdale Crypto Trading Community.

 

 

How Digital Currencies Shape World Economics

 

Growing Dollar Power Through Digital Assets

 

The U.S. has a unique edge with stablecoins. These digital tokens help spread the dollar's influence way beyond what old-school banking ever could.

 

When you use dollar-backed stablecoins, you’re basically using digital dollars. This pushes America's currency system into new markets and countries. The tokens act like digital $100 bills in your pocket.

 

Think about it: every time someone holds a stablecoin, they’re holding a claim on US dollars. This creates demand for dollars worldwide. The more stablecoins people use, the more the dollar becomes part of daily life everywhere—even for Scottsdale Traders.

 

This system gives the US more control over global money flows. Countries that never used dollars directly now join the dollar system through these digital tokens.

 

Pushing Risk Around the Globe

 

Stablecoins do something clever with financial risk - they spread the burden of US debt to anyone holding these tokens.

 

Here’s how:

• You buy stablecoins backed by US Treasury bonds
• Those bonds are slices of America’s $37 trillion debt
• When inflation hits, your tokens lose buying power
• You share in the loss—maybe without realizing it

 

The beauty of this system is that it looks safe. Your stablecoin still says it’s worth one dollar. But that dollar buys less than it used to.

 

This isn’t defaulting on debt. It’s just making the debt worth less in real terms. The US pays back the same number of dollars, but those dollars don’t stretch as far.

 

Traditional System	Stablecoin System
Risk stays in US banks	Risk spreads globally
Limited reach	Worldwide participation
Clear debt holders	Hidden liability sharing

 

What This Means for Token Holders

 

If you hold stablecoins, you’re in this system—like it or not. Your tokens connect you to US monetary policy in ways that weren’t possible before.

 

When the US creates new money, your purchasing power takes a hit. The extra dollars in the system make everything pricier. Your stablecoins still show the same number, but they buy less.

 

This creates a situation where:

• You think you're dodging currency risk
• You're actually taking on inflation risk
• The loss gets spread among millions of token holders
• No one feels the full impact alone

 

Any economy should naturally be deflationary. Technology makes things cheaper. But governments keep printing new money, covering up this natural deflation.

 

Your stablecoins get pulled into this money creation cycle. As more dollars hit the market, your tokens represent a smaller slice of the world’s wealth. The system quietly shifts value from token holders to debt issuers. That’s something every Scottsdale Crypto Trading Community member should think about.

 

Insights From Michael Saylor And Strategic Asset Shifts

 

Proposal To Swap Gold For Bitcoin

 

Michael Saylor pitched a pretty wild idea to President Trump. He told him the US should dump all its gold reserves and use the cash to buy Bitcoin instead.

 

If America sold its gold and bought Bitcoin, we’d end up with about 5 million coins. Basically, you’re just swapping one asset for another, so the cost kind of cancels out.

 

Key Benefits of the Strategy:

• Demonetize gold - Make gold less useful as a reserve asset
• Harm competitors - Countries holding gold would watch their reserves lose value
• Gain control - America could rule both currency and capital networks

 

This plan really targets countries that stash a ton of gold in their central banks. Once gold loses its shine as a reserve asset, those nations take a big hit.

 

Your rivals—yeah, they’re holding a lot of gold. If Bitcoin takes gold’s spot as the go-to store of value, their wealth basically evaporates while yours grows.

 

Potential Effects On The Global Reserve System

 

This asset swap could totally upend global financial power. America’s Bitcoin stash might hit $100 trillion in value. Sounds nuts, but that’s the pitch.

 

The US would end up running two crucial systems:

• The world’s reserve currency network
• The world’s reserve capital network

 

That’s unheard-of influence over global finance. No other country could really keep up with that level of dominance.

 

Asset Class	US Position	Competitor Position
Gold	Eliminated	Holdings become worthless
Bitcoin	5 million coins	Limited holdings
Network Control	Complete dominance	Dependency on US systems

 

This isn’t just a new way to split up assets. It’s a whole different way for the world to store and move value around.

Countries that built their reserves on gold would have to make a tough call. Either switch over to Bitcoin, or watch their wealth shrink.

 

This is real, folks...