According to a policy framework published by the Bitcoin Policy Institute, the American treasury could possibly assign $ 200 billion to Bitcoin (BTC) purchases through a proposed issue of $ 2 trillion of “Bitcoin-improved treasury bonds.”
The bond structure, with the label “₿ bonds”, is designed to refinance part of the $ 14 trillion of federal debts that will mature for the next three years.
Each bond would allocate 90% of the proceeds to conventional government financing and 10% for BTC acquisition, making a strategic Bitcoin reserve possible without requiring a direct taxpayer.
Lower rates for exposing Bitcoin
The proposed ₿ bonds would offer an annual interest rate of 1%, well under the current 10-year treasury of around 4.5%. In exchange for accepting a lower fixed efficiency, investors would be given exposure to Bitcoin coupled by a structured payment in the term of bonds.
This payment would include full reimbursement, fixed interest and a performance-based Bitcoin-linked component. Investors would receive 100% of the BTC profit for a compound annual return threshold, then 50% of any extra profit. The government would retain the remaining share.
On performance-based modeling indicates that even if Bitcoin prices remain flat over the 10-year duration, the US save around $ 354 billion in the current value conditions after deducting the $ 200 billion BTC tendency of the expected $ 554.4 billion in interest.
The framework emphasized that if Bitcoin appreciates in accordance with historical media people, the program could compensate for considerable parts of the national debt by 2045.
In addition, the ₿ bond proposal includes tax-free treatment for interest payments and Bitcoin-linked profits, so that the instruments are placed as a retail-friendly savings product. With estimated participation by 132 million American households, the average investment in the house holding could reach $ 3,025.
The proposal sketched legislative and regulatory frameworks to codify the tax benefits, with administration by the Treasury and the Internal Revenue Service (IRS).
For institutional investors, ₿ bonds present a compliant channel to get Bitcoin exposure while retaining the security profile of Treasury Securities. About 80% of the ₿ bonds would be absorbed by institutional and foreign buyers, whereby the remaining 20% are allocated to American households.
Implementation of Road Map and Risk reasons
The rollout includes a three-phase implementation strategy: a pilot program from $ 5 billion to $ 10 billion, a legal expansion phase and full integration in the standard issue calendar of the Treasury.
The program includes risk management protocols to cover Bitcoin Prijpolatility, market version, operational security and legal classification. To reduce the disruption of the market, the government would acquire the $ 200 billion in Bitcoin through spread dollar costs average and diversified implementing channels.
The assignment also detailed guardianship standards and coordination with federal regulatory authorities to clarify the classification of bonds under securities, raw materials and tax legislation.
The proposed $ 200 billion in BTC purchases would finance a strategic Bitcoin reserve that by President Donald Trump through a Executive order in March 2025.
Bitcoin classified the order as “digital gold” and authorized the development of budget -neutral strategies to expand national companies. BTC restored by forfeiture will finance the first reserves. The ₿ bond program builds directly on this directive, scales reserves by issuing public bonds without dependence on additional tax revenues.
The policy letter noted that the reserve would function as a value of value, with assets in safe custody and excluded from active trade. Storage plans include cold storage with multiple signs and special security infrastructure managed by a specialized treasury unit.
Long -term implications
Modeling scenarios based on historical Bitcoin performance suggest that a Bitcoin reserve could collect trillions in value.
Based on a median historically composite annual growth rate of 53%, the BTC interests of the reserve could exceed $ 14 trillion in value by 2035, with the government retaining a share of $ 6.5 trillion.
Even with the 10th percentile of the Bitcoin growth, the value of the reserve brought by the government could surpass the current American gold reserves.
The ₿ bond initiative is drawn up as an alternative to traditional cuts or tax-based debt solutions. It makes long -term tax stabilization possible through valuation of assets, which makes it possible to reduce or compensate for future federal debt obligations.
The document also stated that the proposal positions the US as a world leader in integrating Bitcoin in sovereign financing, with implications for financial resilience, debt management and development of digital assets.
