Bitcoin Could Replace Dollar as Reserve Currency Amid Rising National Debt

As the U.S. national debt continues to rise, concerns about a potential market crash are growing among traditional finance players. This situation has sparked discussions among prominent cryptocurrency figures about how Bitcoin could benefit from any future financial meltdown caused by the increasing national debt.

The federal debt, as of April 2025, stands at $36.2 trillion, reflecting a 2% increase from April 2024 and a 31% increase from 2019. In response to this data, Brian Armstrong, the CEO of Coinbase, shared his predictions on the social media platform X. Armstrong emphasized the need for the U.S. electorate to persuade Congress to reduce federal government spending.

Armstrong is convinced that if the national deficit continues to rise, Bitcoin could potentially replace the U.S. dollar as the national reserve currency. He stated, “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 a reserve currency.” Armstrong, whose cryptocurrency exchange is the largest in the country, acknowledged the potential benefits for his platform if the U.S. government adopts Bitcoin. However, he also stressed the importance of financial stability, suggesting that Bitcoin might not yet be ready to replace the U.S. dollar as the national reserve currency.

“I love Bitcoin, but a strong America is also super important for the world. We need to get our finances under control,” Armstrong added. While Bitcoin may not immediately replace the U.S. dollar in the central bank's reserves, President Trump's executive order for the “Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile” allows the Federal government to manage the cryptocurrency as a reserve asset.