Summary:
A senior adviser to Russian President Vladimir Putin, Anton Kobyakov, has claimed that the United States plans to use cryptocurrencies, particularly stablecoins, alongside gold to devalue and reset its $35 trillion national debt. Speaking at the Eastern Economic Forum, Kobyakov framed these assets as alternatives to the dollar-centric financial system and accused the U.S. of leveraging them to mitigate a crisis of confidence in the dollar. While Kobyakov suggested that stablecoins could facilitate this debt devaluation, experts note that the current stablecoin market is far too small to absorb such liabilities. The U.S. has also implemented regulations like the GENIUS Act, which ties stablecoin growth to Treasury demand, further complicating this narrative.
What This Means for You:
- Monitor developments in U.S. crypto regulations, as they could impact the global financial system and the value of digital assets.
- Consider diversifying investments into alternative assets like gold and cryptocurrencies to hedge against potential dollar devaluation.
- Stay informed about U.S. debt management strategies, as they could influence inflation and interest rates globally.
- Be cautious of speculative claims about crypto’s role in national debt resolution, as current market sizes and regulations limit its feasibility.
Putin Adviser Says US Will Erase $35T Debt:
A senior adviser to Russian President Vladimir Putin has alleged that the United States is preparing to use cryptocurrencies —specifically US dollar stablecoins—alongside gold to “devalue” and ultimately reset its towering national liabilities. Speaking at the Eastern Economic Forum in Vladivostok, Anton Kobyakov framed crypto and gold as “alternative currencies” to the dollar-centric system and argued that Washington aims to harness them to address what he called a crisis of confidence in the greenback.
“Right now, the United States is trying to change the rules on the gold and cryptocurrency markets. Just think about their debt – $35 trillion. These are two alternative currencies to the global market,” Kobyakov said.
He added: “Washington’s actions in this direction clearly demonstrate one of the main American goals. They want to solve the problem of lowering the dollar’s trust. The United States, as it was in the 1930s and 1970s, will solve its financial problems at the expense of the whole world, driving everyone into the cryptocurrency cloud.”
Kobyakov’s most arresting claim was operational: “Over time, when part of the US government debt is placed in stablecoins, the US will devalue this debt. In other words, they have a $35 trillion debt, they drive it into the cryptocurrency cloud, devalue it and start from scratch.” The remarks, which were circulated by Russian state-adjacent outlets, did not include a detailed mechanism for how “placing” sovereign obligations into stablecoins would alter their real value.
Russia just accused the US of using crypto to wipe out its $35T debt.
Putin’s adviser Kobyakov says Washington will shove debt into stablecoins, devalue it, and reset the system.pic.twitter.com/IwmiLYp2ic
— TFTC (@TFTC21) September 8, 2025
Can Bitcoin And Crypto (Stablecoins) Erase The US Debt?
The accusation lands amid two relevant backdrops: a US debt load now measured in the mid-$30 trillions and a fast-expanding stablecoin and tokenized-Treasury ecosystem that nonetheless remains orders of magnitude smaller than public debt. Treasury data and Congressional dashboards put gross federal debt at roughly $37.4 trillion in early September, with about $30.1 trillion held by the public. By contrast, the entire stablecoin market stands in the high-$200 billions, and tokenized US Treasury products total about $7.4 billion—hardly a platform capable of “absorbing” sovereign liabilities at scale.
US policy developments complicate Kobyakov’s narrative in another way. In July, President Donald Trump signed the GENIUS Act, the first federal framework for payment stablecoins. The law requires 100% reserve backing in cash and short-term Treasuries and mandates regular public disclosures—design choices that, if anything, tie stablecoin growth to incremental demand for Treasury bills rather than a mechanism for extinguishing US obligations. That is, more regulated stablecoins typically mean more private-sector buying of T-bills to back those tokens, not fewer Treasuries outstanding.
Kobyakov’s historical analogy—invoking the 1930s and 1970s—references episodes when US authorities changed the monetary regime: FDR’s dollar devaluation against gold in 1933–34 and Nixon’s 1971 closure of the gold window. But translating that precedent into a “stablecoin devaluation” is tenuous.
Stablecoins are issued by private or specially licensed entities and are designed to be redeemed at par; moving government liabilities “into” them would neither novate the debt nor change its legal terms. Any genuine devaluation of dollar-denominated debt would still occur via familiar channels—higher inflation, negative real rates, buybacks at discounts, or maturity transformation—not by wrapping the debt in token form.
Beyond the stablecoin debate, Washington has already sketched an alternative pathway: a Strategic Bitcoin Reserve. On March 6, 2025, the White House issued an executive order establishing a federal bitcoin reserve alongside a US Digital Asset Stockpile to manage government-owned crypto (largely from forfeitures) on a long-term, “budget-neutral” basis; companion legislation—the BITCOIN Act introduced in both chambers—would codify governance and disclosure rules.
US President Donald Trump himself has floated the idea in blunt terms. In an Aug. 2024 Fox Business interview with Maria Bartiromo, he mused: “Who knows? Maybe we’ll pay off our $35 trillion, hand them a little crypto check, right? We’ll hand them a little Bitcoin and wipe out our $35 trillion.” The remark was rhetorical rather than an operational plan, but it prefigured the administration’s March 6, 2025 executive order establishing a Strategic Bitcoin Reserve.
At press time, Bitcoin traded at $113,237.
Featured image created with DALL.E, chart from TradingView.com
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Extra Information:
For further reading, explore these resources: GENIUS Act Overview, which explains the U.S. regulatory framework for stablecoins, and Strategic Bitcoin Reserve Executive Order, detailing the U.S. government’s approach to managing digital assets.
People Also Ask About:
- Can cryptocurrencies like Bitcoin erase national debt? No, cryptocurrencies are not a mechanism for eliminating debt but can serve as alternative assets in a diversified financial system.
- What are stablecoins? Stablecoins are cryptocurrencies pegged to stable assets like the U.S. dollar, designed to minimize volatility.
- How does the GENIUS Act impact stablecoins? The GENIUS Act mandates 100% reserve backing and transparency, tying stablecoin growth to Treasury demand.
- What is a Strategic Bitcoin Reserve? It’s a U.S. government initiative to manage Bitcoin and other digital assets on a long-term, budget-neutral basis.
- How does U.S. debt affect the global economy? High U.S. debt levels can influence global inflation, interest rates, and financial stability.
Expert Opinion:
Kobyakov’s claims reflect growing geopolitical tensions around financial systems, but his assertion that stablecoins could erase U.S. debt lacks practical feasibility. As the U.S. expands its regulatory framework for digital assets, the focus remains on integrating cryptocurrencies into the existing financial infrastructure rather than leveraging them for debt resolution.
Key Terms:
- US national debt and cryptocurrencies
- Stablecoins and debt devaluation
- Strategic Bitcoin Reserve
- GENIUS Act explained
- Cryptocurrency and global financial systems
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