USDPutin Aide Accuses America of Crypto Plot to Cancel $37 Trillion Debt
A senior adviser to Russian President Vladimir Putin has accused the United States of preparing to use cryptocurrency markets to eliminate its massive $37.4 trillion national debt burden. Anton Kobyakov, speaking at the Eastern Economic Forum in Vladivostok, outlined allegations that Washington intends to transfer government debt into digital assets before orchestrating a coordinated devaluation.
The scale of such an operation would dwarf current cryptocurrency markets. USDT holds $162 billion in market cap while USDC maintains $64 billion, together accounting for roughly 90% of the $252 billion stablecoin ecosystem.
These figures represent less than 0.7% of total US debt, highlighting the massive infrastructure requirements for any proposed debt transfer mechanism. Such large-scale operations would require advanced Bitcoin infrastructure, such as Bitcoin Hyper, which provides the fast and low-cost transaction capabilities necessary for treasury-scale cryptocurrency operations while maintaining network security.
Trump Administration Bitcoin Strategy
Kobyakov claimed the US government plans to exploit stablecoins as a mechanism for debt restructuring, despite the current stablecoin market representing just $252 billion in total capitalization. The Russian official described this as a modern version of currency devaluations from the 1930s and 1970s, suggesting that America will solve its financial problems at a global expense by driving debt into the cryptocurrency cloud.
The accusations coincide with concrete developments in US cryptocurrency policy under the Trump administration. The president previously suggested paying off national debt with Bitcoin during a Fox Business interview, despite Bitcoin's $1.2 trillion market cap falling far short of debt coverage requirements.
Congressional momentum has built around the Strategic Bitcoin Reserve proposal through the bipartisan BITCOIN Act, which aims to acquire 1 million Bitcoin over five years. This represents approximately 5% of the total supply and would require sophisticated transaction infrastructure to execute at treasury scale.
Technical Implementation Challenges
The mechanics of transferring sovereign debt into stablecoin-denominated obligations present unprecedented technical hurdles. Current stablecoin issuers like Tether and Circle operate under strict regulatory frameworks requiring full collateralization with US dollars and Treasury securities, while government-backed stablecoin projects explore alternative approaches to digital dollar infrastructure.
Stablecoin market liquidity reached $1.39 trillion in H1 2025 settlement volumes, but primarily supports trading activities rather than long-term debt holding. Moving trillions in debt obligations would require massive infrastructure upgrades across multiple blockchain networks to handle the transaction volume and settlement requirements.
Blockchain scalability remains a critical bottleneck. Ether has a processing capacity of about 15 transactions per second, compared to 7 transactions per second of Bitcoin. Debt tokenization Smart contracts would require the integration of detailed legal systems that regulate sovereign debt, such as payments of interest and creditor claims.
Current Market Realities
US government Bitcoin holdings currently total $21 billion, representing just 0.06% of national debt obligations. Even the Strategic Bitcoin Reserve target would provide less than 0.2% debt coverage at current valuations around $113,000 per Bitcoin. Daily interest payments on the national debt now exceed $1.5 billion, outpacing potential cryptocurrency appreciation rates.
The Russian official provided no technical explanation for how debt transfer into stablecoins would enable subsequent devaluation, given that major stablecoins maintain algorithmic pegging mechanisms to underlying dollar reserves.
Current frameworks require 100% reserve backing in cash and short-term Treasuries, potentially increasing Treasury demand rather than reducing government obligations. USDT alone holds over $100 billion in Treasury securities as collateral.
Geopolitical Crypto Developments
Russia has simultaneously criticized US cryptocurrency policies while developing domestic digital asset infrastructure. Moscow launched the A7A5 ruble-backed stablecoin for Tron blockchain integration and has utilized USDT for oil settlements with China and India despite imposing crypto payment restrictions in 2022.
The Eastern Economic Forum serves as Russia's alternative to Western economic summits, providing context for Kobyakov's statements as both criticism of US policy and promotion of a multipolar financial architecture independent of dollar systems.
Current US cryptocurrency policy evolution reflects growing institutional acceptance of digital assets as treasury instruments. Executive orders establishing Strategic Bitcoin Reserve frameworks complement congressional legislation requiring secure vault operations managed by the Treasury Department with a minimum 20-year holding period. These developments signal bipartisan support for integrating cryptocurrency into federal financial strategy.
Strategic Reserve Implementation Timeline
The Trump administration's cryptocurrency initiatives continue expanding beyond Bitcoin reserves. The Strategic Digital Asset Stockpile manages government-owned crypto from forfeitures on a long-term basis, while companion legislation codifies governance and disclosure rules for federal cryptocurrency operations.
Funding mechanisms proposed for Bitcoin acquisition include Federal Reserve remittances and gold certificate revaluations, designed to maintain budget neutrality while building strategic reserves. The acquisition timeline spans five years with quarterly purchases to minimize market disruption.
Bitcoin currently trades at $113,237, meaning the proposed Strategic Bitcoin Reserve would require approximately $65 billion in total acquisition costs, with Treasury Department oversight ensuring secure custody protocols.
