TLDR:
- Warning: Coinbase CEO Brian Armstrong cautioned that the U.S.’s $37 trillion debt, if unaddressed, might lead Bitcoin to replace the dollar as the global reserve currency, amid growing concerns over fiscal policy and de-dollarization.
Coinbase CEO Brian Armstrong made a grim prediction that Bitcoin would be the world’s new reserve currency if America does not do anything about its increasing $37 trillion debt. This is what he said on June 04, 2025, while House Republicans cast the Trump-endorsed “big, beautiful bill” into law last May, which extends tax credits, boosts defense spending, and slashes programs like Medicaid and food aid, which could pile further fiscal pressure.
Tuesday’s tweet summarized his ambivalent sentiments: “I love Bitcoin, but having a strong America is very important to the world, as well. We need to get our finances under control.” His appeal comes in the wake of the U.S. debt crisis eroding confidence in the dollar and states like New Hampshire and Arizona getting into Bitcoin. New Hampshire Rep. Keith Ammon told Decrypt that states are not only competing against each other but also against a federal government likely to print money to manage its debt, threatening the dollar’s long-term value.
The fiscal policy’s impact is further criticized by six Nobel Prize-winning economists, including Paul Krugman and Joseph Stiglitz, who argue in a June letter that the bill could increase inequality and public debt by over $3 trillion if its provisions become permanent. Elon Musk, Tesla CEO and former D.O.G.E head, labeled the bill a “disgusting abomination,” reflecting widespread discontent with its implications.
The Senate’s next move on this bill could accelerate global de-dollarization efforts, as critics like Komodo Platform CTO Kadan Stadelmann note. Stadelmann told Decrypt that Bitcoin, born out of the 2008 financial crisis, stands in opposition to fiat currencies, which annually add “hundreds of billions of dollars” to debt. He suggests Bitcoin’s fixed supply and inflation-resistant design make it a safe haven, potentially leading to a supply crunch if the dollar collapses.
Read the latest news on the MevX Blog!
Share on Social Media:
