Coinbase CEO Claims Bitcoin Protects US Dollar Reserve Status
Coinbase CEO Brian Armstrong said Bitcoin helps maintain the US dollar's reserve currency status. According to Cointelegraph, Armstrong made these comments in a December 28 interview on Tetragrammaton with Rick Rubin.
Armstrong argued that Bitcoin provides necessary competition for the US dollar. The cryptocurrency acts as a check on excessive deficit spending and inflation. If US policymakers allow inflation to outpace economic growth, people will move to Bitcoin during uncertain times.
The Coinbase chief said Bitcoin indirectly pressures the Federal Reserve and financial regulators. They must avoid actions that could damage confidence in the US economy. Armstrong concluded that Bitcoin helps extend the American experiment by keeping the dollar disciplined.
US national debt reached $37.65 trillion and rises by $70,843 per second. The debt grows by nearly $4.25 million per minute, per the US Congress Joint Economic Committee's debt dashboard. Bitcoin soared to $126,080 in October but has since dropped 30% to $88,210.
Why This Development Matters
Armstrong's comments arrive as the US expands its Bitcoin holdings through government policy. President Trump established a Strategic Bitcoin Reserve on March 6, 2025, through executive order. Chainalysis reports that the reserve centralizes all government-held Bitcoin obtained through civil and criminal forfeiture.
The US government holds approximately 198,000 BTC, valued at roughly $17 billion as of March 2025. The government will not sell these coins and may develop budget-neutral strategies for acquiring additional Bitcoin. We reported that multiple nations are considering Bitcoin for national reserves, with various countries evaluating the strategic advantages of early adoption.
Several US states followed the federal government's lead. New Hampshire became the first state to establish a Strategic Bitcoin Reserve in May 2025. Arizona passed similar legislation shortly after, creating the second state-level Bitcoin reserve.
The Bitcoin Act of 2025, introduced by Senator Cynthia Lummis, proposes purchasing one million Bitcoin over five years. The bill remains in early legislative stages in Congress. Armstrong's argument suggests Bitcoin adoption at the government level could strengthen rather than threaten dollar dominance.
Broader Industry Implications
The debate over Bitcoin's role in preserving dollar dominance includes competing perspectives about stablecoins. Some industry leaders argue that dollar-pegged stablecoins play a more direct role in cementing US currency supremacy.
Stablecoins recorded their highest annual volume in 2025, reaching over $4 trillion by August, according to TRM Labs. This represents an 83% increase compared to the same period in 2024. Tether and Circle's USDC collectively hold more US Treasuries than Saudi Arabia, per the IMF's July 2025 External Sector Report.
The US passed the GENIUS Act in July 2025, establishing comprehensive stablecoin regulation. Treasury Secretary Scott Bessent stated that the administration will use stablecoins to maintain dollar dominance. The stablecoin market currently sits at $308.5 billion in total market capitalization.
Polygon Foundation CEO Sandeep Nailwal said stablecoins are pushing US dollars into the hands of individuals and businesses worldwide. This creates strong demand for US debt and extends dollar reach beyond traditional financial systems. Armstrong's Bitcoin argument and the stablecoin push both aim to preserve American financial leadership through digital assets.
The competition between these two approaches reflects broader questions about how digital assets will reshape global finance. Both Bitcoin reserves and stablecoin adoption represent attempts to maintain US monetary influence in an increasingly digital world.
