William Cline, a senior fellow at the Peterson Institute for International Economics, dismissed using bitcoin to address the U.S. debt in response to a caller question on C-Span’s Washington Journal on Monday.
Cline talked about information released by the Treasury Department about which foreign countries own the largest amounts of $6 trillion of U.S. Treasury debt. The report showed that the U.S. owed Saudi Arabia $117 billion.
Caller Cites Bitcoin’s Benefits
The caller asked if the U.S. has considered using bitcoin to hold some of the national debt, or investing in bitcoin, “because it is certainly a trusted concept where there is absolute trust between the parties.”
Cline began his response by explaining that bitcoin is a computer-based currency that uses encryption algorithms. “Basically, it’s creating artificial money that’s sort of a secret money,” he said. “I don’t think it has any relevance to U.S. assets. It makes no sense at all to hold U.S. assets in bitcoin. But maybe 10 years from now I’ll be persuaded that maybe that’s