Can a Bitcoin reserve save the U.S. from its debt crisis?

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Bitcoin at the United States’ fiscal crossroads: With the introduction of the BITCOIN Act this summer, Senator Cynthia Lummis (R-Wyo.) called for the creation of a strategic Bitcoin reserve with the goal of reducing the government’s near-$36 trillion national debt. But can this kind of reserve actually solve our debt crisis? In a chapter called “Then They Fight You” from The Satoshi Papers, a new book published by Bitcoin Magazine, FREOPP President Avik Roy argues that while a BTC reserve would be a welcome move, Bitcoin alone cannot resolve $2 trillion annual deficits. If we are to avoid an economic crisis that will inflict catastrophic harm on those who most depend on government spending for their economic security, a move to a Bitcoin standard must be accompanied by significant reforms that put the U.S. on a sustainable fiscal and monetary footing for the future.

Interested in Bitcoin as a bipartisan solution? Hear Avik discuss its role as a hedge against inflation, along with other market-driven approaches to creating new opportunities for low- and middle-income Americans, on the Signature Required podcast.

Why DOGE should promote integrity scoring: Scores from the Congressional Budget Office (CBO) play an important role in helping lawmakers and the general public assess proposed legislation, but the CBO’s current scoring methods fail to account for the economic benefits of programs targeting waste, fraud, and abuse. FREOPP Visiting Fellow Jackson Mejia advocates a move to integrity scoring, which would capture the long-term savings inherent in anti-waste initiatives and provide a more accurate fiscal assessment. President-elect Trump’s promised creation of a Department of Government Efficiency (DOGE) is an opportunity to change CBO scorekeeping guidelines and align them with fiscal realities, delivering better value to the American people and setting a new standard for accountability in government.

→ For more insights on DOGE and the incoming Trump administration team and policies, check out Avik’s comments in The Washington Post, The Wall Street Journal, and FOX News.

Federal benefits and digital ID: With spending on social welfare programs exceeding $1 trillion each year, taxpayers have good reason to want these funds to efficiently and effectively help the lower-income Americans they are designed to reach. Unfortunately, the administrative burden of applying to these programs means many eligible recipients never receive the assistance they need, while billions of dollars are lost to waste, fraud, and abuse. FREOPP scholars Dan Lips and Michael Tanner teamed up with Avik to develop a proposal to modernize the country’s identity infrastructure and use digital technology to streamline agency interactions. They recommend that policymakers pursue incremental reforms to begin establishing a limited and voluntary digital identity program that will prevent identity theft and fraud while ensuring federal benefits seamlessly reach their intended recipients.

The future of freedom & progress in the two major parties: With the 2024 election now in the rearview mirror, both major political parties are grappling with the outcome and setting their priorities for the next four years and beyond. At this year’s Freedom & Progress conference, Avik sat down with Patrick Ruffini, founding partner of Echelon Insights, to discuss the lessons we can learn from this year’s results. In a wide-ranging conversation, they described the ways the electorate is becoming less racially polarized but more divided on the basis of educational attainment, the implications of the fundamental ways that the parties and their voting bases have changed, and more.

Thanks for keeping up with FREOPP, and have a great weekend!

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