Driving US Treasury Demand Through Pro-Bitcoin Policy

Key idea: Bitcoin demand drives Treasury demand.

‍Executive Summary: Any policy agenda over the next decade will require outside financing as mandatory spending and interest on existing debt obligations exhaust all tax receipts. Stablecoins, backed by short term US Treasury instruments, represent an important new source of US government financing. Bitcoin’s unique properties and market dominance catalyze digital asset markets, which account for roughly 90% of stablecoin value. Unlike other potential stablecoin use cases, demand for bitcoin and digital assets is capable of driving interest rate insensitive Treasury demand at the scale and timing relevant to US policymakers.

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