The Bitcoin Policy Institute has suggested a concept of ‘BitBonds’, whereby treasury bonds can be enhanced by Bitcoin.
BitBonds have been touted as a strategy to help implement the US Strategic Reserve, where Trump signed an order to accumulate Bitcoin through revenue-neutral means.
BitBonds would pay investors a fixed 1% annual interest, which is lower than the standard 4.5% expected return of Treasury bonds. However, investors would also benefit from the increase in Bitcoin’s price over time.
BitBonds hold the potential to reduce borrowing costs, combat federal debt, stimulate the economy, and improve the affordability of housing. They could also potentially eradicate $50 trillion of US government debt by 2045.