A Fiscal-Monetary Framework for The Era of Coexistence: Fiat and Cryptocurrency in National Reserve Strategies

Keywords : BTC price, BTC demand, U.S. GDP, Sovereign debt, Inflation, Interest rate, National reserves, United States, Fiscal policies, Fiscal model, Policymakers.


Abstract

This study examines the fiscal and monetary implications of integrating Bitcoin (BTC) into national sovereign reserves, with a focus on its potential impact on debt sustainability, interest rate dynamics, and fiscal credibility. The paper introduces two key models. The first, BTC Price-to-Liquidity Market Model (

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