2 months ago
8768
Coinbase CEO Brian Armstrong stated on X that Bitcoin fosters healthy competition for the US dollar, which helps alleviate inflation and fiscal deficits.
“Bitcoin is good for the USD,” he wrote, “It creates competition in a way that’s healthy for the dollar, and it helps to provide a check and balance against high inflation and deficit spending.”
Armstrong previously said Bitcoin might serve as a reserve currency
Earlier, Armstrong argued that Bitcoin could expand into a reserve currency. He said if lawmakers did not rein in deficits and began paying off some of the national debt, Bitcoin would gradually take on reserve status.
While emphasizing his advocacy for Bitcoin, Armstrong had warned government officials to take immediate action to combat the fiscal deficit, “I love Bitcoin, but a strong America is also super important for the world. We need to get our finances under control.”
At the time, US debt was just shy $37 trillion. Around the same time, economists Charles Collyns and Michael Klein also warned that if fiscal debt continues to rise, more reserve currencies alongside the dollar could emerge.
The Bitcoin executive’s recent comments come at a time when the country’s public debt has already exceeded $38 trillion, and its debt-to-GDP ratio has surpassed 120%. Nonetheless, he believes Bitcoin will support the weakening US dollar and can control inflation and fiscal overspending.
US consumers are still feeling the squeeze of high prices on food and household items. In September, the Consumer Price Index (CPI) inflation rate stood at 3%, up from 2.3% in April, before most tariffs were introduced.
Nonetheless, according to Bank of America’s latest outlook, inflation pressures are expected to ease after a brief uptick in the first quarter of 2026. Other analysts also anticipate that core inflation in the US will moderate in 2026.
Armstrong criticised attempts to reopen the GENIUS Act
Recently, Armstrong also spoke against the attempts to reopen the GENIUS Act. He claimed banks are using their influence in Washington to stifle competition from stablecoins and fintech platforms, adding that he was impressed by how the institutions have avoided public backlash so far.
Moreover, he insisted that Coinbase would push back against any attempt to amend the law, noting that reopening the legislation would only slow innovation instead of improving consumer protection. So far, he has described the current push against stablecoin yields as “100% wasted” and “unethical,” predicting that banks will later ‘realize the benefits and advocate for it.
Several other critics of the bank’s move believe the legislation strikes the right balance between consumer protection and innovation, despite banks claiming that competition remains skewed.
Max Avery, one of the board members and business development leaders at Digital Ascension Group, even warned that proposed changes could be far broader than outright bans on direct interest and limit benefits, such as the sharing of yields with platforms or intermediaries.
Stablecoin rewards, he said, challenge the traditional banking model by returning part of the interest to consumers. Banks today generate approximately 4% on Fed-held reserves, compared to virtually zero for ordinary consumers with savings accounts. He pointed out that despite banks’ supposed ‘safety concerns,’ research suggests that stablecoins are not causing outsized withdrawals from smaller banks.
The smartest crypto minds already read our newsletter. Want in? Join them.
English (US)