The USA has set a course to create a Bitcoin reserve of 1 million BTC, but without taxpayer money. It would be reasonable to assume that since the current Bitcoin reserve of nearly 200,000 bitcoins was collected through confiscations, the remaining 800,000 bitcoins are also intended to be confiscated by the government.
However, it turned out to be much simpler and, as always, banal. These bitcoins will be purchased at the expense of U.S. citizens. One might think they are not taxpayers, whose money Trump promised not to use for creating the crypto reserve.
However, everything will be very cunning. And to remove any doubt that this is not a private initiative from some entrepreneur, it was announced by Andrew Hons, a current member of the board of directors of UNICEF USA, which serves as a CIA agency and has direct ties to American intelligence services.
So, Andrew Hons, as CEO of Newmarket Investment Management, presented a proposal for U.S. “Bitcoin bonds” aimed at using Bitcoin growth to reduce national debt, lower interest rates, and expand household savings opportunities during the Bitcoin Policy Institute summit held on March 11 in Washington, D.C. Speaking at the Bitcoin For America event, which coincided with President Trump’s decree to create a Strategic Bitcoin Reserve (SBR), Hons outlined a plan to issue bonds worth $2 trillion.
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According to this proposal, 10% of the revenue ($200 billion) will go towards purchasing bitcoins (BTC), while 90% will finance government operations. The interest rate on the bonds will be 1% per annum, which is much lower than the current yield on 10-year Treasury bonds, which stands at 4.5%, allowing for savings of about $554 billion in current interest expenses over a decade.
“The federal government of the United States could acquire $200 billion worth of bitcoins while simultaneously saving $354 billion,” Hons noted, emphasizing the dual benefit of reduced borrowing costs and exposure to Bitcoin risk.
Investors will receive 4.5% annual returns plus 50% of Bitcoin’s price growth, while the government will take the other half.
American families will have tax-free access to Bitcoin bonds, protecting profits from income and capital gains taxes. Forecasts based on Bitcoin’s historical performance indicate that even modest growth could yield households returns of 7% to 17% annually. This provides ordinary American families with a “stunning tool” to protect against inflation.
In the long term, the potential rise in Bitcoin’s price could offset the federal debt by trillions of dollars. With a 37% annual increase in Bitcoin, the government’s undistributed profits from Bitcoin could reach $1.776 trillion by 2035.
By 2045, this increase could exceed $50.8 trillion, corresponding to the projected federal debt level.
He also noted that this proposal aligns with Treasury Secretary Bessent’s goal of extending debt maturities and reducing refinancing risks. Despite its speculative nature, Hons presented Bitcoin bonds as “win-win” for taxpayers, investors, and politicians.
Thus, a state Bitcoin reserve will be created through the issuance of Bitcoin bonds funded by ordinary U.S. citizens. But to ensure asset growth sufficient to cover the national debt, bitcoins will need to be purchased by all countries in the world. A genius plan.
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