In a recent public speech, when asked about the future of crypto, President Donald Trump stated, “I think it’s a good future.” He further added that the US may even pay off the $35 trillion US debt using cryptocurrencies. This was not the first time President Trump suggested paying off the US national debt with crypto. Despite the ambitious claim, it is no easy task to pay off more than $35 trillion worth of debt. Let’s discuss what could happen if such a scenario arises.

What Will Happen To The Market If Donald Trump Pays The National Debt Using Crypto?

President Trump has been very vocal about his support for the crypto industry. Upon assuming office, one of the first executive orders signed by the President was to create a strategic digital asset reserve for the US.

Firstly, Congress would need to change laws to allow the Treasury to settle debts using cryptocurrencies. The IRS, SEC, and the Federal Reserve would need to rework their regulatory oversight. Moreover, getting Congress on board may be a Herculean task.

In order to pay off $35 trillion in debt, the US would need to buy or mine extremely large quantities of cryptocurrency. Such an action could lead to a massive surge in prices. However, selling the digital assets to pay off the debt could trigger a massive market crash.

Moreover, if the US decides to pay off its debt using cryptocurrencies, it could lead to a dip in confidence in the US dollar. Such a development could further accelerate the de-dollarization movement. Other countries may begin to stock up on crypto assets, instead of the greenback.

Also Read: Trump Coin Sees 12% Rally After President’s Pro-Crypto Speech

Basically, paying off the US debt using cryptocurrencies may first lead to a market surge, while selling to pay off the debt may trigger a massive crash. Despite the outcome, it will most likely lead to extreme volatility in the crypto market. Moreover, it may also lead to the US dollar losing substantial buyers.