Bitcoin

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Coinbase CEO Brian Armstrong has claimed Bitcoin provides healthy competition for the US dollar, which in turn pressures policymakers to maintain fiscal discipline and helps preserve the greenback’s dominance.
“[Bitcoin] provides a check and balance on the dollar in the sense of if there's too much deficit spending or inflation in the US, people will flee to Bitcoin in times of uncertainty,” Armstrong <a href="https://www.youtube.com/watch?v=s7Re3uyOoPQ" rel="noopener noreferrer nofollow" target="_blank">argued</a> in an interview on Tetragrammaton with Rick Rubin on Thursday.
“It might be okay to have 2-3% inflation if the economy is growing at 2-3% but if inflation outstrips the growth of the economy, you'll eventually lose the reserve currency status, and that would be a massive blow to the United States.”
He said that Bitcoin (<a href="/bitcoin-price" rel="noopener noreferrer">BTC</a>) indirectly keeps the dollar in check by ensuring the Federal Reserve and financial regulators avoid actions that could undermine confidence in the US economy.
“So I actually think in a strange way, Bitcoin is helping extend the American experiment,” the Coinbase boss concluded.
<blockquote class="twitter-tweet">
 Bitcoin is good for USD. It creates competition in a way that’s healthy for the dollar, which helps to provide a check and balance against high inflation and deficit spending. <a href="https://t.co/iHjQCJVqCb" rel="noopener noreferrer nofollow">pic.twitter.com/iHjQCJVqCb</a>— Brian Armstrong (@brian_armstrong) <a href="https://twitter.com/brian_armstrong/status/2005399228173140204?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 28, 2025</a>
</blockquote>
<h2 id="america-s-debt-is-growing-at-6b-a-day-nearing-38t">America’s debt is growing at $6B a day, nearing $38T</h2>
US national debt has boomed to $37.65 trillion, and is now rising by $70,843 per second — or nearly $4.25 million per minute —<a href="https://www.jec.senate.gov/public/index.cfm/republicans/debt-dashboard#mdu" rel="noopener noreferrer nofollow" target="_blank"> according</a> to the US Congress Joint Economic Committee’s debt dashboard.
In early October, <a href="https://cointelegraph.com/news/geopolitical-tensions-us-elections-bitcoin-debasement-trade-jpmorgan" rel="noopener noreferrer nofollow">JPMorgan touted Bitcoin</a> and gold as the “debasement trade” amid increased uncertainty in the dollar.
Bitcoin soared to a $126,080 high on Oct. 10 but has since retraced 30% to $88,210, while gold has continued its tear, setting its latest high of $4,545 per ounce on Friday.
The Trump administration signed an executive order to establish a <a href="https://cointelegraph.com/news/white-house-crypto-report-bitcoin-reserve" rel="noopener noreferrer nofollow">Strategic Bitcoin Reserve</a> in March, a move that several US senators said could mitigate the nation’s mounting debt.
However, the reserve currently stockpiles seized Bitcoin without purchasing any and the <a href="https://cointelegraph.com/news/bitcoin-act-reserve-to-exceed-1-million-law-decoded" rel="noopener noreferrer nofollow">Bitcoin Act of 2025 bill</a> — which purports to support the SBR — is still in the early legislative stages in Congress.
<h2 id="stablecoins-may-do-better-at-preserving-dollar-dominance">Stablecoins may do better at preserving dollar dominance</h2>
Other industry pundits argue that stablecoins have a bigger role in cementing the US dollar’s status as the reserve currency than Bitcoin.
Related: <a href="https://cointelegraph.com/news/crypto-sentiment-holds-extreme-fear-14th-straight-day" rel="noopener noreferrer nofollow">Crypto sentiment holds ‘extreme fear’ for 14th straight day</a>
In addition to creating strong demand for US debt, stablecoins are pushing the US dollar into the hands of individuals and businesses worldwide, Polygon Foundation CEO Sandeep Nailwal <a href="https://x.com/sandeepnailwal/status/1986638580895117535" rel="noopener noreferrer nofollow" target="_blank">said</a> last month.
<blockquote>
 “Dollarisation 2.0 is happening in real time — from LatAm to Africa, entire economies are being rewired around digital dollars.”
</blockquote>
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2025-12/019b682b-f9dc-7889-ac61-2e37e567788e.png" title="" alt="Bitcoin helps USD’s reserve status ‘in a strange way’: Coinbase CEO">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/antoniogm/status/1939810804137972154" rel="noopener noreferrer nofollow" target="_blank">Antonio García Martínez&nbsp;</a>
 </figcaption>
</figure>
 The US passed the<a href="https://cointelegraph.com/news/genius-act-clause-limits-big-tech-stablecoin-power" rel="noopener noreferrer nofollow"> GENIUS Act</a> in mid-July, seen as one of the most comprehensive stablecoin frameworks to date.
The stablecoin market currently <a href="https://www.coingecko.com/en/categories/stablecoins" rel="noopener noreferrer nofollow" target="_blank">sits</a> at $312.6 billion, a figure that the US Treasury estimated in April would reach <a href="https://cointelegraph.com/news/stablecoins-on-track-for-2-t-market-cap-by-2028-us-treasury" rel="noopener noreferrer nofollow">$2 trillion by 2028</a>.
Magazine: <a href="https://cointelegraph.com/magazine/quantum-attacking-bitcoin-would-be-a-waste-of-time-kevin-oleary/" rel="noopener noreferrer nofollow">Quantum attacking Bitcoin would be a waste of time: Kevin O’Leary</a>

Bitcoin helps USD’s reserve status ‘in a strange way’: Coinbase CEO

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