There will be no deficit reduction and it cannot be paid down or mitigated through growth. There are only two possibilities now: 1) hyperinflate or 2) rebase to #Bitcoin.
You write down on a piece of paper how much BTC to send, to who, and sign it. Mail it to the recipient. They take it to the bank and get BTC straight into their account.
If you think Bitcoin is a database, sure. But the only valid data to be stored in that database is the native data format, which is Bitcoin. If you start changing the core functionality to store other data, the entire system breaks down.