At the Eastern Economic Forum, Putin advisor Anton Kobyakov accused the U.S. of trying to use crypto and gold to manage its $35 trillion debt, warning that Washington could shift obligations into stablecoins, devalue them, and “start from scratch” a move he said would undermine global trust in the dollar. Ironically, Russia itself is exploring a ruble-backed stablecoin despite banning crypto payments in 2022.

In the U.S., views are split: Coinbase CEO Brian Armstrong believes the debt crisis could elevate Bitcoin as a reserve currency, while Treasury Secretary Scott Bessent argues crypto could actually strengthen dollar supremacy under the recently passed GENIUS Act, which sets a regulatory framework for stablecoins.

Adding to the debate, Elon Musk, whose Tesla holds $1.3 billion in bitcoin, warned that America’s $37 trillion debt is “unfixable,” saying only AI and robotics might resolve the crisis. He has floated creating a bitcoin-backed political party, calling fiat “hopeless.”

Meanwhile, Wharton professor Jeremy Siegel said Bitcoin poses a real threat to the dollar’s global reserve status, even more than BRICS. He argued that outdated and costly cross-border finance makes crypto attractive, and that clear regulation could accelerate adoption. Investors are also drawn to Bitcoin’s fixed supply as an inflation hedge, a point echoed by Grayscale CEO Michael Sonnenshein, who linked heavy government spending to rising crypto demand.

Why this is important

The debate over U.S. debt and crypto reveals more than just financial speculation, it underscores a power struggle over the future of money. For Washington, stablecoins and Bitcoin represent both a tool and a threat: a way to modernize global finance and protect dollar dominance, but also a potential catalyst for losing that dominance if adoption slips beyond U.S. control.

Russia’s warnings are partly geopolitical posturing, but they also reflect real concern that the U.S. might weaponize new financial systems just as it has with the dollar. Musk’s rhetoric taps into broader public frustration with government spending, showing how crypto is crossing from markets into mainstream political narratives.

Meanwhile, economists like Siegel point out that inefficiencies in today’s cross-border payment system give crypto a genuine opening. If Bitcoin and stablecoins continue to gain legitimacy, they may not only hedge against inflation but also redraw the balance of financial power, forcing governments, businesses, and investors to rethink what counts as money.