Avik Roy, president of the nonprofit think tank Foundation for Research on Equal Opportunity, said at the 2024 North American Blockchain Summit in Dallas, Texas that U.S. Senator Cynthia Lummis’ plan to build a strategic Bitcoin reserve will not be enough to solve the country’s debt crisis, which has swelled to $35 trillion.
Roy said: "When Wyoming Senator Cynthia Lummis talked about how Bitcoin reserves can help us eliminate federal debt, it was an over-exaggeration of Bitcoin's function." He said that the United States' purchase of "huge" appreciating Bitcoin may help, but this cannot make up for the $35.46 trillion debt that has grown almost exponentially since the 1980s. "Bitcoin reserves are good, but it doesn't solve the problem. You still have to really carry out budget reforms to get us out of the $2 trillion federal deficit each year." But he explained that this move could ease tensions in the bond market. "We at least have the ability to support enough dollars with Bitcoin to make the bond market feel that the United States will not go bankrupt." However, Roy worries that such an arrangement may cause the United States to erode these Bitcoin reserves, just as it eroded gold in the 1970s. (Cointelegraph)