Russia has made serious allegations against America. Russia claims that America can repay its debt of $35 trillion using stablecoin. But is this really possible? Real world rules and financial limitations tell a different story.
A claim by Vladimir Putin’s advisor Anton Kobyakov has created a global stir. Debate has once again erupted on the role of crypto. Speaking at the Eastern Economic Forum, Kobyakov alleged that Washington is planning to convert a portion of its $35-37 trillion debt into a US-backed stablecoin and reset the system.
Indian IPR lawyer and analyst Navroop Singh has put forward some facts through a post, which will help you understand that America Will you clear your debt by playing crypto?
It is not easy to convert loan into crypto
Experts said that stablecoins like USDC and USDT are issued by private companies, not by the US government. Converting the national debt into these digital tokens will be considered a default. This would not be a strategy, especially on such a scale when the amount is huge.
Crypto and finance experts believe that Kobyakov’s claim is a geopolitical statement aimed at undermining confidence in the US markets. He says that although some stablecoins have US Treasury reserves, which is about $285 billion. But under the current law it is impossible to change the entire debt load.
Why is it difficult to reset the loan?
Under the GENIUS Act (2025), stablecoin issuers must maintain 1:1 backing in cash or short-term Treasuries and comply with strict regulatory oversight by the Fed, OCC, and FinCEN. They cannot issue loans, reset liabilities, or extinguish obligations. Tokenized treasuries, such as Franklin Templeton’s Benzie Fund, provide digital exposure to government debt, but are not loan products as investment products.
Apart from this, technical challenges are also important. 24/7 blockchain operations do not correspond to traditional banking hours and regulatory compliance adds layers of friction. Simply put, while the US is exploring blockchain-based finance and stablecoins hold government loans, there is no legal or practical route to convert the debt into a crypto asset for the purpose of default.
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