The United States’ national debt exceeded $38 trillion on October 23, 2025, according to the Treasury Department, prompting fresh discussion of President Donald Trump’s earlier suggestion to use cryptocurrency for repayment. 0 The total stood at $38,019,813,354,700.26 as of that date, up from $37 trillion in August, amid a government shutdown that delayed revenues and added to borrowing needs. 4 Trump’s comment, first made during his 2024 campaign and repeated in subsequent events, envisions handing creditors a “crypto check” to settle obligations. This development affects global investors and economies reliant on U.S. bonds, as interest payments now claim 17% of federal spending—$1.21 trillion in fiscal 2025. 8 Reports cover the statement’s timeline, debt drivers, and international responses.
Origins of the Proposal: Campaign Talk to Policy Steps
Trump introduced the concept in an August 2024 Fox Business interview, saying, “Who knows, maybe we’ll pay off our $35 trillion dollar [national debt], hand them a little crypto check, right? We’ll hand them a little Bitcoin and wipe away our $35 trillion.” 28 He elaborated at a September 2024 fundraiser, joking about noting “$35 trillion crypto” on a napkin from Staples to clear the ledger, which drew laughter from attendees. 27 In July 2025, following his reelection, Trump signed Executive Order 14233, establishing a Strategic Bitcoin Reserve with over 200,000 seized bitcoins valued at $25 billion. 32
Supporting measures include the GENIUS Act, requiring stablecoin issuers to hold U.S. Treasuries as reserves, and Treasury Secretary Scott Bessent’s comments on stablecoins driving demand for bonds. 23 Market response followed the latest buzz: Bitcoin rose 15% to $124,000 after October 18 remarks at a Nashville event. 13 BlackRock’s Bitcoin ETF saw $20 billion in Q3 inflows, a 300% year-over-year gain. 23 Ripple CEO Brad Garlinghouse, present at fundraisers, noted potential for crypto in cross-border settlements. 24 On X, posts surged October 24, with users sharing clips and debating implications, including tags for #XRP and warnings from Indian accounts about crypto risks. 10 14 The President’s Working Group on Digital Assets is set to release a regulatory report in November.
Debt Accumulation: Key Factors and Projections
The debt reached $1 trillion in 1982 after two centuries but now grows by that amount every 100 days, driven by tax cuts, defense outlays, and $25 trillion in post-2010 stimulus. 2 Fiscal 2025 ended with a $1.8 trillion deficit, as confirmed by Treasury on October 17, with interest surpassing defense and Medicare costs. 6 Per-person debt stands at $111,000, or $286,000 per household. 7
Trump’s shift from deeming Bitcoin a “scam” in 2021 to advocating U.S. leadership in crypto aligns with these pressures. 28 Congressional Budget Office projections show debt-to-GDP at 100% now, possibly reaching 156% by 2055 without changes. 8 Democrats highlighted the remarks in 2024 hearings, while a Peterson Foundation poll found 81% of voters prioritizing debt. 4 Cornell’s Eswar Prasad stated that using volatile assets for repayment would need creditor consent, currently unavailable. 26 Chainalysis reported $1 trillion in institutional outflows from prior regulations, now rebounding.
Global Perspectives: Concerns and Market Links
Foreign entities hold $8 trillion in Treasuries, amplifying the story’s reach. 2 In September 2025, Russian advisor Anton Kobyakov told the Eastern Economic Forum that the U.S. aims to embed debt in stablecoins and rewrite crypto-gold rules, potentially devaluing international reserves. 23 Japan and China expressed worries over dollar impacts. 23
Deloitte estimates tokenization could add 2-3% to GDP via efficiencies, though El Salvador’s 2022 bitcoin losses reached 20%. 23 The Ronin hack’s $600 million loss highlights scaling risks. 26 Analysts calculate Bitcoin would require $1.8 million per coin to match the debt alone. 26 ISO 20022-compliant assets like XRP feature in X discussions for payment utility. 19 Bitcoin’s market cap approaches gold’s $16 trillion.
Fiscal Crossroads
The $38 trillion mark underscores borrowing trends, with $1 trillion added roughly every 100 days and debt limit talks due in January 2026. 5 Treasury auctions continue, showing stablecoin influences, as the November report looms.