According to the Global Debt Monitor report by the Institute of International Finance (IIF), total global debt (public and private) increased by $7 trillion just in 2024, reaching a record $318 trillion – equivalent to nearly 328% of global GDP. In the OECD area, the need to issue government bonds in 2025 is forecasted to soar to $17 trillion, a record high. The pressure of interest payments is increasingly eroding budgets, forcing many countries to seek new solutions for the debt problem.

CZ 'Throws a Stone into the Shallow Pond': Bitcoin Can Save the World

In a recent interview, Binance founder Changpeng Zhao (CZ) asserted: 'Bitcoin can remedy the global public debt crisis.' He argued that Bitcoin's absolute scarcity, decentralization, and borderless nature make it a new 'hard currency standard' that imposes fiscal discipline on governments. On social media X, CZ emphasized: 'Bitcoin can address most of the current public debt.'

CZ's Argument – Why is Bitcoin Different?

How Can Bitcoin 'Cure' Public Debt?

  1. Fiscal discipline

    If governments are forced to hold or issue bonds denominated in BTC, spending beyond revenue will quickly reflect in reserve value, creating pressure to reduce deficits.

  2. Debt restructuring with scarce assets

    A country could issue Bitcoin Bonds (like El Salvador) to convert USD debt to 'pegged' debt in BTC; investors receive yields with expectations for Bitcoin price appreciation.

  3. Cutting the 'money printing' bridge

    With a fixed supply, there’s no longer room for unlimited monetary easing. This prevents the 'inflation tax' that reduces real debt but raises inflation.

  4. Reducing dependence on USD

    A multipolar reserve system (BTC + gold + CBDC digital currency) could reduce risks associated with a single reserve currency and lower borrowing costs for emerging markets as the Fed tightens.

Unavoidable Barriers

  • Price volatility: BTC has lost >70% of its value during a bear cycle; difficult to fit for pension funds & budget reserves.

  • Liquidity scale: Market capitalization of ~1.3 trillion USD (July 2025) is still 'small as a grain of sand' compared to the world's $318 trillion debt.

  • Legal & tax framework: Most countries do not yet allow the use of BTC to pay taxes.

  • Energy demand: Bitcoin mining consumes approximately 0.58% of global electricity in 2024; the pressure to go green is increasing.

  • Wealth inequality: 2% of wallets hold over 90% of circulating BTC; the 'remedy' could exacerbate wealth disparities.

Future Scenarios

The Lure

CZ's statement resembles more of a 'wake-up call' than a detailed blueprint. Bitcoin possesses the attributes that sound money theory craves: scarcity, transparency, decentralization. However, to turn BTC into a 'remedy' for public debt requires:

  1. Price stability – extensive asset securitization, derivatives for risk management.

  2. Clear legal framework – unified accounting standards, taxation, anti-money laundering.

  3. Decades-long transition roadmap – alongside fiat & BTC, avoiding liquidity shocks.

In other words, Bitcoin has the potential to become a 'super discipline institution' that forces governments to keep spending within limits. However, until practical bottlenecks are resolved, BTC remains just a part of the toolbox, not the 'magic machine' to erase humanity's $318 trillion debt.