Bitcoin News: US Policy Proposal Suggests $2 Trillion Bitcoin-Enhanced Bonds to Create Strategic Reserve

A groundbreaking policy framework has been put forward by the Bitcoin Policy Institute, proposing a novel financial instrument that could significantly impact both the US government’s financing strategy and the future of Bitcoin adoption.

US Policy Proposal Suggests $2 Trillion Bitcoin-Enhanced Bonds

A policy framework published by the Bitcoin Policy Institute calls on the US Treasury to issue $2 trillion in Bitcoin-enhanced bonds. These “₿ Bonds” would allocate 90% of proceeds to conventional government financing and 10% toward BTC acquisition, enabling the creation of a Strategic Bitcoin Reserve without direct taxpayer funding. The proposed bonds would offer a 1% annual interest rate, significantly lower than the current 10-year Treasury yield of approximately 4.5%.

Bitcoin Headed Below $60K, Crypto Sector Faces Severe Downtrend

A crypto hedge fund manager predicts that Bitcoin could fall below $60,000 by the end of the year, with the entire crypto sector facing a severe downtrend reminiscent of 2022. Quinn Thompson, founder of Lekker Capital, told CoinDesk that Bitcoin could drop to a ’five handle,’ i.e., a price between $50,000 and $59,999, representing a substantial decline from the current $83,000 level and a 50% drop from its peak of just above $109,000 two months ago. Thompson added that the decline would be slow and painful, shocking investors due to the current market’s lack of volatility.

Metaplanet Issues $13 Million In Bonds For Additional Bitcoin Purchases

Metaplanet, a Japanese Bitcoin treasury company, has announced the issuance of 2 billion Japanese yen ($13.3 million) in zero-interest bonds to expand its BTC reserves. The debt security will be allocated via the company’s Evo fund, allowing investors to redeem the bonds at full face value by September 30. Metaplanet CEO Simon Gerovich cited the recent pullback in crypto prices as an opportunity to increase their BTC holdings. At the time of publication, Bitcoin was trading at $83,797, down 23.2% from its January all-time high.

Bitcoin Challenges US Dollar as Debt Soars

BlackRock CEO Larry Fink has warned that the US dollar could lose its dominance as the global reserve currency due to exploding national debt. By 2030, debt service and mandatory spending could consume all federal revenue, leading to permanent deficits. In such a scenario, investors may turn to Bitcoin (BTC) as a safer, more stable store of value. Bitcoin’s rise is no longer just a tech story but a macroeconomic hedge, potentially competing directly with the US dollar on the global stage.

Metaplanet Issues $13M Zero-Interest Bonds to Boost Bitcoin Holdings

Metaplanet, a Japanese company, has issued zero-interest bonds worth 2 billion yen, approximately $13.3 million, through its Evo Fund. The bonds, which mature on September 30, 2025, are part of the company’s strategy to increase its Bitcoin holdings during the recent market price correction. By issuing these bonds, Metaplanet aims to profit from current cryptocurrency market declines while building up its Bitcoin investments. The company maintains a steady approach by making Bitcoin its main treasury component, focusing on acquiring more during the dip in prices.