Coinbase CEO: Rising US Debt To Make Bitcoin World’s Reserve Currency
The post Coinbase CEO: Rising US Debt To Make Bitcoin World’s Reserve Currency appeared on BitcoinEthereumNews.com.
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…
