Coinbase CEO Warns U.S. Debt Crisis Could Push Bitcoin Toward Reserve Currency Status

In Brief:

Brian Armstrong says unresolved U.S. debt could make Bitcoin a global reserve asset.

Some U.S. states are already exploring Bitcoin reserves to hedge against dollar risk.

Coinbase CEO Brian Armstrong has warned that Bitcoin could emerge as a global reserve currency if the U.S. government fails to rein in its growing debt. The statement follows the House Republicans’ passage of the "Beautiful Act" in May, which some economists argue could worsen the nation’s $37 trillion fiscal burden.

Speaking to Decrypt, Armstrong noted that while he strongly supports Bitcoin, the idea of it replacing the U.S. dollar isn’t ideal. “I love Bitcoin, but a strong America is also very important to the world. We need to control our finances,” he said.

The warning comes amid increased fiscal pressure and mounting inflation concerns. In response, states like New Hampshire and Arizona have reportedly started holding Bitcoin as part of their financial reserves, aiming to hedge against the dollar's depreciation.

Meanwhile, six Nobel Prize-winning economists have criticized the "Beautiful Act," saying it may deepen inequality and exacerbate debt levels, further undermining global confidence in the U.S. dollar.

Armstrong’s remarks underscore a growing sentiment that Bitcoin may serve as a long-term alternative if traditional financial systems continue to falter under political and fiscal strain.

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