By Nermeen Nabil Khear 
In their new policy brief, “Bitcoin-Enhanced Treasury Bonds: An Idea Whose Time Has Come,” the co-authors, Andrew Hohns and Matthew Pines, present a fresh approach to tackling the $9.3 trillion of federal debt set to mature within the next year.
With interest rates approaching 4.5%, servicing this debt is putting a heavy strain on taxpayers and limiting the government’s ability to grow the economy.
BitBonds: A Strategy to Cut Debt and Strengthen Finances
The proposal builds on President Donald J. Trump’s 2025 Executive Order, which established the Strategic Bitcoin Reserve, recognizing Bitcoin as a strategic reserve asset similar to digital gold. The policy brief suggests adopting Bitcoin-enhanced US Treasury Bonds, or “₿ Bonds” (also known as BitBonds), to address several key fiscal goals.
We’re proud to announce our latest policy brief, “Bitcoin-Enhanced Treasury Bonds: An Idea Whose Time Has Come.” Co-authored by Andrew Hohns & @matthew_pines, it explores the viability of a BitBonds strategy.
Read here: https://t.co/Z65iqHnZB9 pic.twitter.com/XzIZC2n87B
— Bitcoin Policy Institute (@btcpolicyorg) March 31, 2025
BitBonds would offer immediate relief by significantly reducing interest costs on Treasury bonds, expand the Strategic Bitcoin Reserve without burdening taxpayers, and create a tax-advantaged savings option for American families. It also opens a path to reduce the federal debt through the appreciation of Bitcoin, rather than relying on increased taxes or cuts to government spending.
BitBonds: Saving Billions and Reducing Debt Through Bitcoin
The structure of BitBonds is simple yet effective: 90% of the proceeds would be used for traditional government funding, while 10% would go towards purchasing Bitcoin, ensuring a balance between stability and exposure to Bitcoin’s growth potential. This strategy capitalizes on America’s leadership in finance and technology, positioning the country to become a “Bitcoin superpower” while addressing its fiscal challenges.
Source: Bitcoin Policy Institute
Financial analysis reveals that implementing BitBonds on a scale of $2 trillion—roughly 20% of the 2025 refinancing needs—could save up to $70 billion annually in interest costs. Over a decade, these savings could total $700 billion, with a present value of $554.4 billion. Even with a conservative approach to Bitcoin’s price growth, the program could still generate net taxpayer savings of $354.4 billion. With Bitcoin’s historical performance considered, the returns from these holdings could substantially reduce, or even eliminate, the federal debt burden for future generations.
Disclaimer
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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