Brian Armstrong, the CEO of Coinbase, has made a shocking statement about the rising national debt in the United States. He said that if the country’s fiscal problems are not fixed, Bitcoin could replace the U.S. dollar as the world’s reserve currency. Armstrong’s comments highlight growing worries about the dollar’s long-term stability and the rise of cryptocurrencies, especially since the national debt is over $37 trillion.
The dollar is going down, and debt is going up
The U.S. government has never had to pay so much money in interest alone, which is about $684 billion a year. This fiscal path has caused the U.S. Dollar Index (DXY) to drop noticeably, which means that investors are losing faith in the dollar’s strength.
Armstrong brought these problems to light in a recent X (formerly Twitter) post:
If the electorate doesn't hold congress accountable to reducing the deficit, and start paying down the debt, Bitcoin is going to take over as reserve currency.
— Brian Armstrong (@brian_armstrong) June 4, 2025
I love Bitcoin, but a strong America is also super important for the world. We need to get our finances under control. https://t.co/aeBE7pUuHo
His statement aligns with a broader belief that excessive government spending and debt could erode the dollar’s dominance as the global currency, potentially paving the way for decentralized alternatives such as Bitcoin.
Bitcoin’s Usefulness as a Financial Hedge
Bitcoin is a good way to protect yourself against traditional financial risks because it has a limited supply, is decentralized, and doesn’t lose value over time. More and more institutional investors and even some state governments are thinking about including Bitcoin in their financial plans.
For example, Keith Ammon, a representative from New Hampshire, told a news website:
”When it comes to stockpiling Bitcoin, U.S. states aren’t just racing against each other. They’re competing against a federal government that will be forced to print money to deal with its debt.”
- Keith Ammon, New Hampshire Representative
More and more people are seeing Bitcoin as a reserve asset, which shows that the way people think about financial stability is changing. Digital currencies are becoming more accepted as real alternatives to fiat money.
Changes in politics and the use of cryptocurrency
The political climate is also changing in favor of using cryptocurrencies. The Trump administration has done some important things, like suggesting a Strategic Bitcoin Reserve and pushing for the U.S. to become a global center for cryptocurrency innovation. These projects are meant to make digital assets a part of the country’s financial system, which will make them even more legitimate in the economy.
Vice President JD Vance stressed how important it is to accept Bitcoin from a strategic perspective, especially in light of global competition:
“We should use Bitcoin as an advantage in our rivalry with China.”
— JD Vance, U.S. Vice President
Endorsements like these from high-ranking officials show a big change in policy and opinion, which could speed up the use of cryptocurrencies by the general public.
The global financial landscape is changing because of the combination of fiscal problems and technological progress. The U.S. is having trouble with its growing debt, which makes decentralized currencies like Bitcoin more appealing. The dollar is still the most important reserve currency, but Bitcoin’s rise suggests that digital assets will become more important in global finance in the future.
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