Bitcoin Reserve Won’t Solve US Debt Crisis, Says Think Tank Co-Founder

Avik Roy, president of the Foundation for Research on Equal Opportunity, has criticized Senator Cynthia Lummis’ claim that a strategic Bitcoin reserve could eliminate the U.S. federal debt, calling it an overstatement. Speaking at the North American Blockchain Summit 2024, Roy emphasized that while Bitcoin reserves could help mitigate pressure in the bond market and potentially stabilize the U.S. dollar, they would not address the country’s $35 trillion debt or its $2 trillion annual deficits.
Lummis’ proposal, introduced in July, suggests the U.S. acquire 1 million BTC (5% of total supply) and hold it for 20 years, partly funded by converting gold reserves. However, Roy warned that such reserves, like gold in the 1970s, could be depleted without proper fiscal reforms. Since 1981, national debt has grown 5.3% annually, underlining the need for deeper budgetary changes.