Coinbase CEO: Bitcoin bolsters US dollar’s reserve status
Coinbase CEO Brian Armstrong said Bitcoin is reinforcing the U.S. dollar’s role as the world’s reserve currency by serving as a market check on high inflation and deficit spending.
Speaking on Tetragrammaton with Rick Rubin on Thursday, Armstrong said Bitcoin offers competition to the dollar that can prompt U.S. policymakers to maintain fiscal discipline, noting that in periods of uncertainty investors may rotate into Bitcoin if they expect inflation or deficits to rise.
Armstrong added that inflation of around 2–3% may be manageable if economic growth matches that pace, but warned that if inflation persistently exceeds growth, the U.S. risks eroding confidence in the dollar’s reserve status. He argued that Bitcoin indirectly encourages the Federal Reserve and regulators to avoid steps that could weaken trust in the U.S. economy, saying it is, “in a strange way,” helping to sustain the American system.
Armstrong reiterated the view in a social media post on December 28, 2025, describing Bitcoin as creating healthy competition for the dollar that can act as a check on elevated inflation and government deficits.
U.S. debt is increasing by $6B per day, nearing $38T
The U.S. national debt has reached $37.65 trillion and is climbing by $70,843 each second — nearly $4.25 million per minute — according to the U.S. Congress Joint Economic Committee’s debt dashboard.
In early October, JPMorgan characterized Bitcoin and gold as a “debasement trade” amid growing uncertainty surrounding the dollar.
Bitcoin rose to an intraday high of $126,080 on Oct. 10 before pulling back 30% to $88,210, while gold extended its gains, hitting a fresh high of $4,545 per ounce on Friday.
In March, the Trump administration issued an executive order to create a Strategic Bitcoin Reserve, a step several U.S. Senators said could help address rising federal debt. The reserve currently holds seized Bitcoin rather than purchasing it, and the Bitcoin Act of 2025 — which would support the SBR — remains in the early stages of consideration in Congress.
Stablecoins may play a larger role in maintaining dollar dominance
Some industry participants contend that stablecoins could contribute more to preserving the dollar’s reserve currency status than Bitcoin.
Alongside generating sustained demand for U.S. debt, stablecoins are extending the reach of the dollar to users and businesses globally, Polygon Foundation CEO Sandeep Nailwal said last month, describing a wave of “Dollarisation 2.0” across regions from Latin America to Africa as economies adopt digital dollars.
The U.S. enacted the GENIUS Act in mid-July, regarded as one of the most comprehensive stablecoin regulatory frameworks to date.
The stablecoin market stands at $312.6 billion, a level the U.S. Treasury projected in April could expand to $2 trillion by 2028.
Stay informed, read the latest news right now!
Disclaimer
The content on TrustsCrypto.com is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile, always do your own research before making decisions.
Some content may be assisted by AI and reviewed by our editorial team, but accuracy is not guaranteed. TrustsCrypto.com is not responsible for any losses resulting from the use of information provided.
