The Bitcoin Policy Institute proposes to issue "BitBonds" to support Trump's strategic Bitcoin reserves

ChainCatcher news, according to The Block, the Bitcoin Policy Institute has proposed the issuance of a new type of government bond called "BitBonds" to support the Trump administration's strategic Bitcoin reserve plan. This bond will offer a 1% annual interest rate (lower than the ordinary government bond rate of 4.5%) and will allocate 10% of the funds raised to purchase Bitcoin.

According to the plan, if $20 trillion worth of BitBonds are issued, it could save $700 billion in interest over ten years. Currently, the U.S. government holds approximately 200,000 Bitcoins (worth $17 billion), and after deducting the portion that needs to be returned, the initial scale of the strategic reserve is about 103,500 Bitcoins.

The proposal aims to achieve budget-neutral accumulation of Bitcoin while reducing the cost of government bonds. The Secretary of the Treasury will assess the feasibility of this proposal within 60 days.