Changpeng Zhao Advocates Bitcoin for Public Debt Resolution

Changpeng Zhao, former CEO of Binance, has reignited debate by proposing Bitcoin could help manage escalating public debt. Speaking in July 2025, Zhao highlighted Bitcoin’s decentralized nature as a hedge against inflation for global governments.

Zhao’s comments emphasize Bitcoin’s role as a fiscal hedge and its potential to address financial instability globally, reinforcing the growing discourse on integrating Bitcoin into national economic strategies.

Changpeng Zhao, a prominent figure in crypto, reignited conversations on public debt by advocating Bitcoin adoption by governments. He suggests Bitcoin’s decentralized nature can hedge against inflation and address irresponsible spending.

The former Binance CEO argues nations like the U.S. and China could stabilize their economies by incorporating Bitcoin into their financial systems. Zhao sees increasing interest in digital assets from sovereign states.

Although no direct funding effects have been observed yet, Zhao’s advocacy aligns with countries exploring Bitcoin reserves and related financial products. The potential for significant market impact sees widespread attention.

His proposal faces mixed reactions; while some see potential in Bitcoin-backed reserves, others cite volatility concerns. Nevertheless, interest in digital assets as fiscal tools remains high, especially in inflation-sensitive nations.

“Bitcoin could potentially address the escalating public debt crisis… Bitcoin, with its decentralized nature and a fixed supply of 21 million coins, provides a hedge against inflation and irresponsible government spending. If more governments allocated a portion of their reserves to Bitcoin or used it in place of traditional fiat in some sectors, it could stabilize their economies in the long term.” – Changpeng Zhao, Former CEO, Binance, source

Historical precedents include El Salvador, which adopted Bitcoin as legal tender, and Bulgaria, which missed out on significant gains by selling its Bitcoin holdings too early. These instances highlight digital currencies’ potential impact.

Zhao’s commentary suggests shifts in financial strategies may enhance digital assets’ appeal. Historical trends show potential for sovereign debt management using cryptocurrencies, inviting both intrigue and skepticism.