Fact or Fiction?: The Debate Over America's Use of Gold and Cryptocurrencies to Erase Its Debt

The global financial system is in a period of rapid transformation, with intense discussions about the future of the U.S. dollar's role as the world's leading reserve currency. This debate is unfolding as concerns about the massive U.S. national debt, which has exceeded $35 trillion, and the sustainability of Washington's financial policies continue to grow. Amidst this climate, various international parties, particularly Russia, have made claims about an alleged American strategy to eliminate this debt using gold and cryptocurrencies.

Russian Allegations of "Rewriting the Rules"

Anton Kubyakov, a Russian presidential adviser, has claimed that the United States is orchestrating a plan to get rid of its enormous national debt by "rewriting the rules" of the gold and cryptocurrency markets. Speaking at an economic forum, he suggested that Washington intends to present these assets as alternatives to the traditional global currency system.

In a post on his "X" account, Kubyakov asserted, "The U.S. is now trying to rewrite the rules of the gold and cryptocurrency markets. Remember the size of their debt, $35 trillion... These two sectors represent fundamental alternatives to the traditional global currency system." He also claimed that Washington's actions in this area "clearly highlight one of its main goals, which is to urgently address the decline in confidence in the dollar."

Expert Perspectives: A Counter-Narrative

In contrast, economic experts argue that these allegations are largely a form of propaganda and that official U.S. policy is moving in a completely different direction.

• Strengthening, Not Weakening, the Dollar: Financial market expert Mohamed Saeed points out that U.S. policies regarding cryptocurrencies aim to strengthen the dollar's dominance, not weaken it. Laws such as the "STABLE" and "GENIUS" Acts are designed to link stablecoins to the U.S. dollar, which would increase demand for the dollar and U.S. Treasury bonds, thereby reinforcing its position as the global reserve currency.

• Gold and Revaluation: Regarding gold, the U.S. holds massive reserves of approximately 8,800 tons, but its book value is outdated. Saeed notes that a formal revaluation of gold's price could improve the government's balance sheet, but this idea has not yet become official policy.

• Impractical Manipulation: Joe Yarq, Head of Global Markets at Cedra Markets, emphasizes that manipulating the gold and cryptocurrency markets to erase debt is "practically impossible" due to their immense size and transparency. While the U.S. does hold strategic reserves of Bitcoin, the limited supply and high volatility of these assets prevent Washington from controlling the markets.

• Lack of Tangible Evidence: Talal Tabbaa, Co-Founder of Coinmena, states there is "no tangible evidence" that the U.S. is manipulating the crypto market to get rid of its debt. He adds that the U.S. can simply print more dollars to cover budget deficits, a traditional tool for managing debt.

Broader Context: The Geopolitical Struggle

The economic expert Dr. Rami Qalyoubi suggests that the Russian allegations contain an element of "propaganda." He states that U.S. power stems from being the world's leading economy combined with its military might, and therefore, it is not in its interest to allow any challenge to the dollar's status.