Brian Armstrong, CEO of Coinbase, has warned that unless the U.S. controls its fiscal deficit and mounting debt, bitcoin (BTC) could eventually replace the dollar as the world’s reserve currency.
Armstrong emphasized that a strong America remains essential for global stability, but rising fiscal deficits and mounting debt threaten both the U.S. economy and the dollar’s long-standing dominance in international finance.
“I love Bitcoin, but a strong America is also super important for the world. We need to get our finances under control,” Armstrong said.
Why the Dollar’s Reserve Status Matters
The U.S. dollar’s role as the global reserve currency underpins much of the international financial system. It provides liquidity, supports large and stable Treasury markets, and is widely used in global trade and finance. This dominance enables the U.S. to borrow at lower costs and run deficits with less immediate economic pain.
However, decades of rising public debt have pushed U.S. debt levels past $36 trillion, now exceeding 120% of GDP. Projections warn this could exceed $44 trillion by 2028, with the debt-to-GDP ratio climbing further.
Such unsustainable debt risks inflation, undermines confidence in U.S. assets, and ultimately threatens the dollar’s reserve status—a cornerstone of global economic stability.
The Historical Context: Currency Cycles and Debt
Armstrong explained that history shows empires and their currencies rise and fall with fiscal discipline:
“If you study history, the changing world order—with different empires having the reserve currency at different moments—once you decouple currency from hard commodities, the inevitable story is they get overprinted and extended.”
He warns the process isn’t sudden but gradual, likening it to a “frog slowly cooked,” with tipping points historically around 150-200% debt-to-GDP, where economic troubles escalate.
Bitcoin as a New Reserve Asset
Bitcoin’s fixed supply and decentralized nature make it a unique alternative. Increasingly viewed as “digital gold,” bitcoin appeals as a hedge against inflation and fiscal mismanagement.
Armstrong noted:
“If the debt situation doesn’t get fixed, eventually bitcoin will have to become the reserve currency—for better or worse.”
Armstrong praised crypto legislation efforts and the current administration’s tailwind for crypto but cautioned that “Congress needs to get spending under control to preserve this American experiment.”
Regulation: A Path to Mainstream Adoption
Contrary to fears, Armstrong sees regulation as a positive force:
“Regulatory clarity will be a huge boon for crypto. We are actively working with policymakers to pass legislation like the Stablecoin Act and the Clarity Act. Clear rules expand the market and attract institutional and retail investors.”
Risks and Criticisms
While Bitcoin’s rise is notable, critics caution about volatility, scalability, energy consumption, and the feasibility of supplanting the dollar given its entrenched global role and network effects. Transitioning to a new reserve currency historically takes decades and depends on geopolitical and economic shifts.
Armstrong acknowledges these complexities but stresses that ignoring unsustainable debt trends risks greater economic disruption.
As America’s debt trajectory worsens, the idea of bitcoin supplanting the dollar is no longer just a fringe crypto fantasy—it’s becoming a serious point of debate among policymakers, economists, and investors alike.
Best Wallets To Buy Bitcoin
In today’s market, where centralized exchanges are becoming the prey of relentless hacks and security breaches, buying Bitcoin with secure, self-custodial tools like Best Wallet has never been more important.
Best Wallet’s non-custodial architecture offers a strong line of defense against centralized risks, allowing users to maintain full control of their private keys.
Also complementing its security-focused design is Fireblocks, a heavyweight tailored to protect user assets against phishing, malware, and drainer exploits – all while guaranteeing easy access.
Moreover, being a no-KYC wallet, Best Wallet delivers full anonymity, allowing users to buy, trade, and store their Bitcoin without undergoing rigorous identity checks. It’s little wonder it’s being named as one of the best places to buy Bitcoin in 2025 by The New York Post.
It’s not just the security and no-KYC approach that makes Best Wallet ideal for Bitcoin investors. The fact that it intertwines the feature with advanced wallet functionalities is the key reason why people are rallying behind it.
Basically, users can buy Bitcoin using fiat, thanks to its integration of over 20 on-ramp providers. It is also possible to execute cross-chain swaps, maximize staking opportunities, and even gain exclusive access to some of the best cryptocurrencies at their zero stage.
The last feature is particularly unique since it opens up the pathway for investors to find early moving opportunities without having to navigate multiple interfaces. Another aspect attracting investors is its native token – BEST – which has already raised over $13 million in its ongoing token sale stage.
Considering the broader shift among crypto users toward self-custody and real utility, experts are already backing Best Wallet to capture 40% of the entire wallet market.
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