Andrew Hohns, of the Financial Advisory firm Newmarket Capital, revealed yesterday the Bitcoin bonds for the United States, a financial revolution that promises to relieve debt and empower American families. The idea keeps strong similarity with the proposal made by the president of El Salvador, Nayib Bukele, who in 2021 raised the bond issuance for 1,000 million dollars, partially backed by Bitcoin (BTC), with a period of 10 years and an interest rate of 6.5% annual. So, inspired by El Salvador, the BTC bonds for the United States were presented at the Bitcoin event for America, organized by the Bitcoin Policy Institute. There, Hohns said this innovative financial instrument could drastically reduce interest rates to 10 yearsgenerate significant savings for taxpayers and, at the same time, position the country as a leader in the adoption of the pioneering digital currency through the strategic reserve recently ordered by President Donald Trump. In such a way that, as Hohns explained, his plan responds to the worrying situation around the federal debt of 9.3 billion dollars (a little more than a quarter of the total federal debt of the United States. UU.) That he expires in the next 12 months. Therefore, it represents a tough burden for Americans because it must refinance for higher interest rates than three years ago, when they were historically low. This increase, reflection of more strict monetary policies and global economic conditions, raises the cost of debt service (the interests that the government pays). According to Hohns, this translates into additional billions that leave the federal budget, reducing funds for public services or increasing taxes, which directly presses citizens' finances and aggravates «extremely heavy burden on taxpayers. As things look, there seems to be no way out, and definitely the financial landscape is quite dark for Americans. So, while Trump and Treasury Secretary, Scott Besent, seek to reduce long -term interest rates and diversify bond emissions, Hohns proposes to emit 2 billion dollars in «Bitcoin bonds.» Of this amount, 90% of that amount (1.8 billion dollars) would be allocated to government purchases and cushion the debt, while 10% (200 billion dollars) would be used to acquire approximately 2.22 million BTC at the current price of $ 90,000 per unit.
Bitcoin bonds presented by Hohns could reduce interest rates, generate savings for taxpayers and reduce US debt. UU. Source: YouTube/Bitcoin Policy Institute.
A Bitcoin plan to relieve US debt.
The appeal of this proposal lies in its financial design. Bitcoin bonds would offer a fixed interest rate of 1% annual – very below the current 4.5% of the 10 -year Treasury bonds – which, which would generate an annual savings of 70 billion dollars in interestequivalent to 700 billion dollars in a decade. Therefore, if the 200 billion dollars initially invested in Bitcoin are discounted, net savings in present value would reach 554 billion dollars. «The government could acquire 200 billion dollars in Bitcoin and, at the same time, save 354 billion,» said Hohns. According to him, this strategy is aligned with Trump's executive order, which seeks to develop innovative methods to incorporate Bitcoin neutrally or integrate it into treasure bonds without generating additional costs for taxpayers.
«President Trump and Secretary Besent have also indicated his firm interest in reducing interest rates to 10 years, which has an important effect on consumer finances, mortgages, car loans, as well as in federal interest expenditure. President Trump created the Bitcoin strategic reserve and, in particular, ordered the United States government to identify neutral forms in income to acquire bitcoin through the creative integration of Bitcoin In treasure bonds. I would like to suggest that in this way we can also significantly reduce the costs of indebtedness of the federal government ». Andrew Hohns, CEO of Newmarket capital.
Andrew Hohns brought hope with the bitcoin bonds that have the potential to save millions and transform lives of Americans. Source: YouTube/Bitcoin Policy Institute.
American families empowered with Bitcoin
In addition, Hohns proposed that Bitcoin bonds be exempt from taxes on interest and capital gains, making them a powerful tool for US families. According to their calculations, if 138 million households invested $ 2,900 each (equivalent to 20% of the issuance), significant returns would obtain. In the 10 annual growth percentile compound of Bitcoin, a family would earn $ 965 in 10 years (7% per year); In the 50th percentile, the return would be 177%, all tax free. «This puts A great savings tool in the hands of Americans common to defend against inflation, ”he said. The impact would not be limited to family finances. Hohns argued that reducing interest rates from 4.5% to 1% in these bonds could influence the largest market, lowering mortgages, car loans and credits for small businesses. The Government would also retain 50% of Bitcoin's appreciation potential, which, in a conservative scenario (25 growth percentile), would generate 1,776 billion dollars in 10 years, And up to 50.8 billion dollars in 20 years, sufficient to cushion the federal debt projected by 2045. Hohns's speech, which closed with a call to treasure and congress to adopt this idea, was enthusiastically received by the attendees, who see in the Bitcoin bonds an innovative solution for current economic challenges. However, its implementation will depend on the political will and a deeper analysis of Bitcoin's volatility and its integration into public finances. To this is added the precedent of El Salvador, where Bitcoin bonds, despite being announced, have not yet been launched and the proposal seems to have lost impulse, since an agreement signed between the IMF and the Salvadoran government limits direct government interaction with Bitcoin. For now, Hohns' idea raises a future in which Bitcoin can support the US economy and redefine the way in which the country manages its debt and wealth.