Coinbase CEO Warns U.S. Debt Could Push Bitcoin to Replace USD

Coinbase CEO Brian Armstrong has expressed concerns about the U.S. national debt, which has recently surpassed $37 trillion, and its potential impact on the global financial system. Armstrong warned that if the U.S. continues to accumulate debt without addressing the deficit, Bitcoin could eventually replace the USD as the world’s reserve currency. He emphasized the importance of a strong America for global stability but also highlighted the growing appeal of Bitcoin as a hedge against fiscal instability.

Armstrong’s comments come at a time when House Republicans are advancing a Trump-backed spending bill that includes tax cuts, increased military funding, and reductions in programs like Medicaid, food aid, and clean energy. Critics of the bill argue that it could exacerbate the debt problem, with a group of Nobel Prize-winning economists warning that it could push public debt even higher by at least $3 trillion if its provisions are made permanent.

The growing debt burden has drawn attention to Bitcoin, which was created after the 2008 financial crisis as a fixed-supply, inflation-resistant asset. With rising institutional demand, some analysts view Bitcoin as an increasingly credible hedge against economic uncertainty. Tesla CEO Elon Musk also criticized the spending bill, describing it as a “massive, outrageous, pork-filled Congressional spending bill” and a “disgusting abomination” that would burden American citizens with unsustainable debt.

In response to the soaring national debt, lawmakers are considering innovative solutions, including the potential use of Bitcoin as a reserve asset. Last year, Senator Cynthia Lummis introduced a proposal to establish a Bitcoin Strategic Reserve, which would position Bitcoin as a hedge against inflation and fiscal instability. The bill, which gained momentum after Donald Trump’s 2024 election victory, aims to direct the U.S. Treasury to gradually accumulate 1 million BTC, approximately 5% of Bitcoin’s total supply. This reserve would be stored in a decentralized network of secure vaults, funded by existing Treasury assets, and could help offset the declining value of the dollar and protect American families from long-term inflationary effects.

Lummis argued that establishing a Bitcoin reserve is a bold step towards securing the country’s economic future, describing Bitcoin as a modern store of value. Trump has previously expressed support for making the U.S. the “crypto capital of the planet,” and Bitcoin is now emerging as a potential pillar of national economic strategy. The proposal reflects a growing recognition of Bitcoin’s potential to stabilize the economy in the face of mounting debt and fiscal challenges.