Changpeng Zhao, founder of Binance, has suggested that Bitcoin might be a solution to public debt issues. His statement highlights the potential of cryptocurrencies in sovereign finance.
Changpeng Zhao's Statement on Bitcoin
Changpeng Zhao stated on July 16, 2025, that "Bitcoin could solve most public debt." This declaration followed his stepping down as CEO due to a settlement with U.S. authorities.
Bitcoin as an Asset for Financial Management
Zhao's comment indicates a growing interest in cryptocurrencies as viable assets in sovereign finance. He noted historical instances where countries like Bulgaria and El Salvador used Bitcoin for public finance.
Prospects and Risks of Using Bitcoin in Public Finance
Despite its potential as a macro hedge, the assertion that Bitcoin could relieve public debt has not yet led to direct government actions. Financial analysts express cautious optimism about Bitcoin's use.
Changpeng Zhao's statement raises important questions about the future of public financing and the potential use of Bitcoin as a reserve asset. However, volatility remains a significant barrier to adopting such initiatives.
