A bold, debt-reducing, wealth-building policy that empowers everyday Americans while securing the future of our social safety net funding.
A National Debt Crisis—And a Bold New Solution
Across the political spectrum, one issue sparks universal concern: America’s growing national debt. With over $14 trillion in federal debt maturing in the next three years, and interest rates hovering around 4.5%, the cost of simply maintaining our fiscal obligations is spiraling.
For progressives, this isn’t just a macroeconomic problem—it’s a direct threat to social programs we care deeply about: Medicare, Social Security, healthcare, education, and climate investments. Without new, sustainable solutions, we risk losing the very systems that support these programs on which millions of Americans rely.
But instead of choosing between austerity and inaction, there’s a new way forward—a strategy that lowers debt costs, builds wealth for everyday Americans, and prepares the country for the future of finance.
It’s called the Bitcoin-Enhanced Treasury Bond, or ₿itBond.
What is a ₿itBond?
₿itbonds, as presented in the Bitcoin Policy Institute’s policy brief on Bitbonds by Andrew Hones and Matthew Pines, are a new kind of U.S. Treasury security that would allocate 90% of proceeds to regular government funding and 10% toward acquiring bitcoin for a national Strategic Bitcoin Reserve,
Bondholders receive:
- A fixed interest payment (e.g. 1% annually), and
- An additional payout at maturity tied to bitcoin’s price appreciation.
The bond is fully backed by the U.S. government, just like traditional Treasuries—ensuring principal protection no matter what happens with bitcoin’s price.
Why This Matters for Progressives
Let’s break it down:
✅ 1. Lower Interest Costs = More Room for Public Investment
A $2 trillion issuance of ₿ Bonds would save $70 billion per year compared to traditional bonds. That’s $700 billion in savings over 10 years, and $354.4 billion in net savings even if bitcoin doesn’t appreciate.
That’s funding we can use to strengthen social safety net programming, not cut it.
✅ 2. A Tax-Free, Wealth-Building Vehicle for Everyday People
The proposed ₿itBond legislation includes tax-exempt interest and tax-free bitcoin-linked gains for Americans who hold until maturity—similar to municipal bonds.
That makes ₿itBonds a secure, government-backed way for everyday people to benefit from bitcoin’s upside, without needing an exchange account, a cold wallet, or technical know-how.
✅ 3. A Progressive Approach to Fiscal Sustainability
Instead of pushing debt onto future generations or slashing public services, ₿itBonds offer a risk-adjusted, revenue-neutral path to reduce the national debt through asset appreciation.
This approach aligns fiscal responsibility with long-term intergenerational equity.
How BitBonds Can Help Save Social Security
Social Security is on a dangerous trajectory. The latest projections from the Social Security Administration warn that the program’s trust fund could be depleted by the mid-2030s, leading to automatic benefit cuts of up to 20% unless Congress acts. This would devastate millions of seniors, disabled individuals, and vulnerable families who rely on these earned benefits. And while Congress can act in ways that further our debt and budget deficits, ₿itBonds offer a novel, budget-neutral way to ease this pressure—by lowering the federal government’s interest expenses and creating new long-term fiscal capacity through bitcoin-backed asset growth. With billions in annual savings and the potential to eliminate debt over time, ₿itBonds could help ensure that Social Security is not sacrificed in future budget fights, but strengthened for generations to come.
Strategic Leadership in the Digital Age
With a rising number of countries exploring Bitcoin reserves, the U.S. has a chance to lead, not lag. By building a Strategic Bitcoin Reserve, America can:
- Hedge against inflation and currency debasement
- Reduce reliance on foreign creditors
- Signal innovation and stability to global markets
- Sustainable funding for social safety net programs
The ₿itBond program strengthens financial sovereignty while maintaining the dollar’s dominance and safeguarding democratic institutions. The reason this approach is so appealing as well is it benefits the U.S. government and everyday people who can buy treasuries with ease. This is an approach to government acquisition of Bitcoin that doesn’t rely on tax-payer dollars, tariffs, or other avenues for spending that may be a nonstarter for many lawmakers, particularly progressives.
A Win-Win-Win for the U.S. Government and American families
₿itBonds aren’t just smart policy—they’re inclusive policy. Here’s what they deliver:
- 💰 For the Government: Lower debt servicing costs and a new reserve asset
- 🏡 For American Families: Tax-free savings with long-term upside potential
- 🏥 For Social Programs: A stronger fiscal foundation to fund public priorities
In a time of division and scarcity politics, ₿itBonds offer an abundant, future-forward, and people-centered solution.
Let’s Reimagine Public Finance
It’s time to stop thinking of innovation as the enemy of equity or social good. The tools of the future can serve the people—if we build them right. Bitcoin is one such tool.
Bitcoin-Enhanced Treasury Bonds represent a once-in-a-generation opportunity to align technology, public finance, and social justice.
Let’s use this moment not just to patch holes in our budget or kick the unsustainable deficit can down the road—but to build a bridge to a more secure, sovereign, and inclusive financial future for all Americans.
Trey Walsh is a fervent progressive and Bitcoin advocate, with an extensive background in the nonprofit sector, leading initiatives aimed at workforce development and poverty alleviation. His journey into the world of Bitcoin was sparked by its potential to advance human rights and social justice.
