Venmo Donations Amidst $39 Trillion Debt?...USA, When Will the Bitcoin Strategic Reserve Bill Pass?

▲ U.S. Congress, Bitcoin (BTC)/AI Generated Image

The U.S. Department of the Treasury has allowed simple payment donations to address the national debt of $39 trillion. However, the Bitcoin (BTC) Strategic Reserve Bill remains stalled, unable to pass the Senate.

According to crypto media outlet BeInCrypto on April 26 (local time), the Treasury Department has added Venmo as a means for voluntary donations to repay debt. The total U.S. debt is currently estimated at approximately $39 trillion. According to Treasury statistics, voluntary donations for debt repayment amount to only about $120,000 per month. This figure is woefully insufficient when compared to the $88 billion in interest expenses incurred each month. The Treasury's proposed solution is interpreted as a desperate measure to resolve the national debt crisis.

While the Treasury Department focuses on small donations, the Bitcoin Act, long awaited by the virtual asset industry, has not passed the legislative threshold. The bill's core content is for the U.S. government to purchase 1 million BTC over five years and hold it as a national strategic asset. The Bitcoin Act, led by Senator Cynthia Lummis, aimed to solve the national debt problem with Bitcoin. However, discussions stalled in the Senate Finance Committee, leading to criticism that a golden opportunity is being missed.

In contrast to the government, private sector companies are actively utilizing Bitcoin as a treasury asset. Strategy, a representative company holding a large amount of Bitcoin, held a total of 815,061 BTC as of April 26. Converted to value, this amounts to approximately $63.46 billion. Strategy acquired Bitcoin through 107 separate purchases at an average price of $75,528. While companies are accumulating reserves at a national level, government decision-making is being delayed.

Macroeconomic experts warn that the U.S. debt problem has reached a critical point where it cannot be solved by small donations. The $39 trillion debt is exerting severe downward pressure on the entire U.S. economy. The idea of introducing Bitcoin as a strategic asset to be used for debt relief is evaluated by the market as an innovative alternative. However, political uncertainties and regulatory barriers are hindering its path, suggesting that actual implementation will take considerable time.

The passage of the U.S. Cryptocurrency Market Structure Bill (CLARITY) is also an important variable for Bitcoin strategic reserves. This is because government-level large-scale asset purchases can only gain justification once regulatory clarity is secured. Currently, the virtual asset market is awaiting a significant policy change: the reserve of 1 million BTC. As the price of Bitcoin fluctuates around the $77,500 mark, a change in the government's stance is expected to be a watershed moment for the market.

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