Russian Advisor Alleges US Plans Crypto-Backed Debt Devaluation Amidst $36.56 Trillion National Debt

A senior advisor to Russian President Vladimir Putin, Anton Kobyakov, has publicly claimed that the United States is orchestrating a "crypto reset" to devalue its staggering national debt, which recently surpassed $36.56 trillion. Kobyakov, speaking at the Eastern Economic Forum, suggested that the US intends to leverage stablecoins and potentially gold to mitigate its financial obligations at the expense of global creditors.

According to Kobyakov, the US plans to shift a portion of its national debt into a "crypto cloud" through dollar-pegged stablecoins. This strategy, he argues, would allow Washington to "devalue this debt" and effectively "start from scratch," a move he likened to historical financial resets in 1933 and 1971. The mechanism involves the US exporting inflation globally, as stablecoins, often backed by US Treasuries, would spread the burden of devalued currency to international holders.

The theory posits that stablecoins, particularly those backed by US Treasuries, could increase demand for US government debt, thereby aiding in its financing. "Over time, once part of the U.S. national debt is placed into stablecoins, Washington will devalue that debt," Kobyakov stated, implying that the US would use inflation to reduce the real value of its obligations. This approach, he suggested, would allow the US to maintain financial dominance while externalizing the costs.

Discussions within the US government and financial circles have explored the integration of cryptocurrencies. Senator Cynthia Lummis has advocated for Bitcoin as a solution to the national debt, promoting the BITCOIN Act to acquire 1 million Bitcoin over five years. Treasury Secretary Scott Bessent has also expressed interest in selling government bonds through stablecoins, believing they could "buttress the dollar’s status as the global reserve currency" and increase demand for US Treasuries.

However, critics and international observers, including Kobyakov, express distrust, citing past instances where the US altered financial rules, such as the 1971 Nixon Shock which ended the dollar's convertibility to gold. They argue that a similar shift with stablecoins could erode global trust. The ongoing debate highlights the complex interplay between traditional finance, burgeoning digital assets, and the persistent challenge of the US national debt.