Coinbase CEO Brian Armstrong says Bitcoin acts as a constructive counterweight to the US dollar, encouraging fiscal discipline and ultimately reinforcing the dollar’s global dominance.
Speaking on Tetragrammation with Rick Rubin on Thursday, Armstrong argued that Bitcoin serves as a “check and balance” on the dollar. He explained that during periods of excessive deficit spending or rising inflation in the United States, investors may turn to Bitcoin as a hedge, signaling waning confidence in traditional monetary policy.
Armstrong noted that moderate inflation—around 2% to 3%—can be sustainable if economic growth keeps pace. However, if inflation consistently exceeds growth, the US risks eroding trust in the dollar and, over time, jeopardizing its reserve currency status—an outcome he described as a major threat to the country.
According to Armstrong, the mere existence of Bitcoin pressures the Federal Reserve and financial regulators to act responsibly, as policy missteps could push capital toward decentralized alternatives.
“In a strange way,” he concluded, “Bitcoin is actually helping to extend the American experiment.”
America’s debt continues to climb at an alarming pace, increasing by roughly $6 billion per day as total US national debt approaches $38 trillion. According to the US Congress Joint Economic Committee’s debt dashboard, the figure now stands at $37.65 trillion and is growing by about $70,843 every second—nearly $4.25 million per minute.
Against this backdrop, JPMorgan described Bitcoin and gold in early October as part of the so-called “debasement trade,” reflecting rising uncertainty around the US dollar. Bitcoin surged to a peak of $126,080 on Oct. 10 before pulling back roughly 30% to $88,210. Gold, meanwhile, has continued its rally, reaching a fresh record of $4,545 per ounce on Friday.
In March, the Trump administration signed an executive order establishing a Strategic Bitcoin Reserve (SBR), a move some US senators argued could help offset the country’s growing debt burden. For now, however, the reserve only holds Bitcoin seized through enforcement actions and does not involve active purchases. The proposed Bitcoin Act of 2025, which aims to formalize and expand the SBR, remains in the early stages of the legislative process.
Others in the crypto industry contend that stablecoins may play a more significant role than Bitcoin in reinforcing the dollar’s global dominance. By driving demand for US debt and distributing dollar-denominated assets worldwide, stablecoins are helping extend the reach of the US dollar to individuals and businesses across the globe, Polygon Foundation CEO Sandeep Nailwal said last month.
“Dollarisation 2.0 is happening in real time — from LatAm to Africa, entire economies are being rewired around digital dollars.”
The United States passed the GENIUS Act in mid-July, widely regarded as one of the most comprehensive regulatory frameworks for stablecoins to date.
The stablecoin market is currently valued at $312.6 billion, and the US Treasury projected in April that it could expand to $2 trillion by 2028.
