Why is the US embracing encryption? The answer may lie in its massive $37 trillion debt.

A senior Russian advisor pointed out that the United States is planning to devalue its $37 trillion national debt using cryptocurrencies and stablecoins. Resetting the debt through a "crypto cloud" system, making other countries pay for it, is not a crazy theory, but a well-established method the US has long practiced. This article is based on a video by YouTuber Andrei Jikh (Russia Says U.S. Planning $37 Trillion Crypto Reset), compiled and reorganized by Odaily. (Previous context: US debt surpasses $30 trillion for the first time! Doubling in seven years, interest alone burns through $1.2 trillion annually) (Background information: Musk predicts: AI will solve $38 trillion in US debt within 3 years, and humans will no longer need to work in 20 years) At a recent Eastern Economic Forum in Russia, one of Putin's closest advisors made a statement that has attracted widespread attention. He stated that the United States is preparing to use cryptocurrencies and stablecoins to devalue its $37 trillion national debt in a virtually imperceptible way. His claim is that the US is plotting to "migrate" this debt into a crypto system, using a so-called "crypto cloud" to perform a system-wide reset, ultimately making other countries pay for it. At first glance, this might sound like a crazy theory. But similar views are not new. MicroStrategy founder and billionaire Michael Saylor previously made a highly controversial suggestion to Trump: sell all of America's gold reserves and buy Bitcoin. Clearing out gold reserves would allow the same amount of money to buy 5 million Bitcoins. This would demonetize the entire gold asset class. Meanwhile, our adversaries hold massive gold reserves. Their assets would approach zero, while our assets would swell to $100 trillion, and the US would simultaneously control the global reserve capital network and reserve currency system. But the question is: is this realistic? Is it really feasible? YouTube blogger Andrei Jikh, with 2.93 million subscribers, analyzed in a video: What exactly did Putin's advisor say? And how exactly the United States might devalue its $37 trillion debt through stablecoins and Bitcoin.Odaily Planet Daily compiled and translated this video. The first question is: Who said these words? The speaker is Anton Kobyakov, a senior advisor to Russian President Vladimir Putin, who has served for over ten years, primarily responsible for releasing Russia's strategic narrative at important events like the Eastern Economic Forum. In his speech, he explicitly stated that the United States is attempting to rewrite the rules of the gold and cryptocurrency markets, with the ultimate goal of pushing the global economic system into what he calls a "crypto cloud." Once the global financial system completes this migration, the United States can embed its massive national debt into digital asset structures such as stablecoins, and then achieve a de facto "debt zeroing" through devaluation. The second question is: What exactly does "debt devaluation" mean? How does it work? Let's understand this with an extremely simplified example. Suppose the entire world's wealth is only worth a $100 bill. I borrow all $100, thus owing the entire world's wealth, which I must repay. The problem is, if I honestly repay the debt, I must return the entire $100. Fortunately, I possess a special "superpower"—I control the issuance of the world's reserve currency. So, instead of returning the original $100 bill, I print a new $100 bill out of thin air. What's the result? The total amount of currency in circulation in the world increases from $100 to $200, but the quantity of goods, houses, and resources in the world doesn't increase. As a result, the price of everything starts to rise: real estate, stocks, gold, especially things that people want, all become more expensive; what used to cost $1 now costs $2. Everything becomes more expensive, but the supply of goods remains unchanged. This is inflation. Now, when I return "that $100 bill" to you, on the surface I have fully fulfilled my debt obligations, but in reality, the purchasing power of the money you receive is only half. I haven't defaulted, but I have devalued my debt by diluting the currency. Stablecoins are replicating this old script. However, what many people don't realize is that this is one of the oldest and most common ways of repaying debts in human history.This is also how the US has always repaid its debt. Debt devaluation does not equate to default or non-payment. It simply reduces the real value of the debt through inflation or currency manipulation. This method has occurred time and again throughout history. It was the case after World War II, during the Great Inflation of the 1970s, and again after the massive quantitative easing following the pandemic. Therefore, when a Russian advisor says that "the US may use cryptocurrency to devalue its debt," he is not revealing a new mechanism, but describing an old method that the US has long mastered. The real change lies in stablecoins, which can spread this mechanism globally. It needs to be clarified that this does not mean "directly converting $37 trillion into stablecoins," but rather using dollar-denominated stablecoins with US Treasury bonds as the underlying asset to distribute the US debt structure to global holders. When the dollar is diluted by inflation, the loss is shared by all holders of these stablecoins. I want to mention something extremely important, and a fundamental economic fact that many people overlook, which is also Jeff Booth's point: the natural state of the economy is actually deflation. This means that if there were only a fixed amount of currency in the world, over time, technological advancements and increased production efficiency would naturally lead to lower prices for goods. Price declines would be the natural order of things. But reality doesn't work this way; the world we live in doesn't operate this way. There's only one reason: governments can create unlimited amounts of money. When new currency floods the system, this liquidity must "find a place" to avoid becoming worthless. So, it's invested in things like real estate, stocks, gold, and Bitcoin. This is why, in the long run, these assets seem to always appreciate. But in reality, they are merely maintaining their purchasing power, while the currency supporting everything is becoming weaker and weaker. It's not that assets are appreciating; it's that the dollar is depreciating. The true value of stablecoins: distribution + control. The question is, what if you could extend this superpower? What if you could extend the same trick outside the US? This is where stablecoins come in. If the US can already devalue its debt through regular inflation, what more can stablecoins do?The answer is two words: distribution + control. Because when there's inflation in the US, the economic pain is immediate: we see higher grocery bills, more expensive homes, rising energy costs, and potentially higher interest rates; CPI and Consumer Price Index reports rise, and Americans become dissatisfied. But stablecoins are different. Because stablecoins typically hold reserves in short-term US Treasury bonds, the demand for the dollar and US Treasury bonds can actually rise as stablecoin adoption increases, making the whole thing self-reinforcing. When USDT and USDC are widely used globally, they are essentially holding a digital IOU backed by US Treasury bonds. This means that US debt financing is being "invisibly outsourced" to global users. So, if the US...