Can the U.S. Really Erase $37 Trillion in Debt Using Crypto? (Debunking the Myth)

Can crypto really erase America’s $37 trillion debt? It sounds wild, but this theory has been spreading fast online. Some claim the U.S. government could “mint a coin” or use digital assets to wipe away its debt overnight. But is that actually possible?

In this blog post, we break down the viral “crypto debt erasure” theory and explain what’s really happening with U.S. debt, the Federal Reserve, and the growing digital dollar narrative.

Where the $37 Trillion Crypto Theory Came From

Hey there, Noel here. There’s a theory going around online that the U.S. government is planning to erase its $37 trillion national debt by using—wait for it—crypto.

Yeah, as in stablecoins, digital dollars, even a full-on crypto reset. Some folks are saying they’ll move the debt into the blockchain or some kind of “crypto cloud,” and just like that—poof—the debt’s gone.

At first, I thought this had to be one of those internet rumors. But then I watched a video from Andrei Jikh, and to his credit, he explained it in a way that made you stop and think. That’s when I realized I needed to dig into this further, because here’s the deal:

This theory works because it sounds complex. It throws around crypto buzzwords and vague technical jargon, and that’s what makes it feel believable to some people.

But look, as an accounting professional and someone who bought Bitcoin in 2015 (and sold it a year later—that’s another story), I think it’s time to slow down and look at this with a little common sense.

The Theory Sounds Smart...But It’s Mostly Noise

This idea actually started at an economic forum in Russia. One of Putin’s top advisors claimed the U.S. was preparing to move its $37 trillion debt into something called the Crypto Cloud.

Supposedly, they’d use stablecoins and digital assets to devalue or even erase national debt. But here’s the thing: it’s incredibly vague, and that’s exactly why it spread so fast.

From there, big names like Michael Saylor, the CEO of MicroStrategy, jumped on it. He even said the U.S. should sell off its gold and buy Bitcoin instead. Soon, YouTube and TikTok exploded with videos claiming a “crypto reset” was coming to wipe out America’s debt.

But like Andrei Jikh pointed out, just because a theory uses real financial terms doesn’t mean it’s true. It might sound smart and technical, but when you stop and analyze it, it falls apart pretty quickly.

There’s an old saying: “If you can’t dazzle them with details, baffle them with nonsense.” That’s exactly what’s happening here.

What’s Actually Possible...and What’s Not

Let’s slow down and unpack this. Can the U.S. actually wipe out its debt using cryptocurrencies? Or are people just getting lost in complicated terms?

When people talk about U.S. national debt, they’re referring to Treasury bills, notes, and bonds—money the government has borrowed from investors, countries, and even Americans in exchange for interest.

That’s not something you can drag and drop onto a blockchain. It’s a legal contract with real consequences if you don’t pay it back. You can’t just move it over to crypto and say, “All right, we’re good now.” That’s not how it works.

The Real Tool Governments Use: Inflation

Here’s where it gets interesting, and Andrei Jikh makes a great point here. The U.S. can’t erase its national debt with crypto, but it can reduce the real burden of that debt over time through inflation.

Let’s say I borrow $100 from you. A year later, I pay you back the same $100. But during that time, prices have gone up...groceries, gas, rent, everything. So you got your money back, but it doesn’t buy what it used to.

That’s inflation. Governments, including ours, quietly chip away at their debt not by defaulting or making it disappear, but by slowly weakening its value over time.

Stablecoins, Inflation, and the Real Connection

So what about stablecoins? Coins like USDC or USDT (Tether) are basically digital dollars. They’re backed by cash or short-term U.S. Treasury bonds, and people use them to trade, send money, or escape unstable currencies.

When someone in another country holds a stablecoin, they’re essentially holding a digital IOU tied to the U.S. dollar, and by extension, U.S. debt.

So when inflation hits, it’s not just Americans feeling the pain anymore. Anyone holding a dollar-backed stablecoin gets hit too. Inflation spreads globally.

But let’s be clear, this doesn’t erase the debt. The U.S. still has to make payments and repay the principal. Nothing actually disappears.

What it does mean is that inflation gets exported, spreading the burden to anyone holding dollar-based assets around the world.

Debunking Some Theories

Now, let’s talk about the parts of the theory that just don’t make sense.

Claim #1: The U.S. can move $37 trillion of debt into a “crypto cloud.”
There’s no such thing. Debt is a legal contract, not a digital file. You can’t upload it somewhere and make it vanish.

Claim #2: The U.S. will sell all its gold and buy Bitcoin.
This came from Michael Saylor, but there’s no real plan for that. Yes, in 2025, Trump signed an executive order creating a Strategic Bitcoin Reserve, but it only manages Bitcoin the government already owns...it’s not buying more.

Claim #3: The U.S. is secretly using private companies to stack crypto.
There’s zero evidence of this. Companies like MicroStrategy can buy Bitcoin all they want, but that doesn’t mean the U.S. government is behind it.

What’s Really Happening

Here’s the truth. The U.S. manages its debt the same way it always has:

• It issues Treasury bonds

• It prints more dollars when needed

• And it uses inflation to slowly reduce the real burden of what it owes

That’s it. That’s the playbook. And for now, it works, because the U.S. dollar is still the world’s reserve currency.

The more people around the world who use stablecoins, the more demand there is for U.S. debt and U.S. dollars. And when inflation hits, the pain quietly spreads to anyone holding these digital dollars.

It’s not a conspiracy...it’s the U.S. exporting inflation more efficiently.

Key Takeaways

• The U.S. can’t erase $37 trillion in debt using crypto, it’s pure fantasy.

• Stablecoins expand the global use of the dollar but don’t eliminate debt.

• Inflation, not blockchain, is the real tool governments use to reduce debt over time.

• The viral theory sounds smart but falls apart under basic scrutiny.
  
  

The Bottom Line

Could the U.S. ever erase its $37 trillion debt with crypto? No. But can it quietly spread the effects of inflation to the rest of the world through stablecoins? Yes, and it’s already happening.

It’s not a hidden agenda or a secret reset. It’s just how the financial system works when your currency sits at the center of the global economy.

What do you think, could crypto ever be used to cancel national debt, or is it all a fantasy? Watch the full YouTube video and share your thoughts in the comments section there.

If you want to know what I think about Bitcoin, check out my YouTube video here. Thanks for reading and see you there!