Coinbase CEO Brian Armstrong recently highlighted the rise of cryptocurrency as a crucial tool against inflation and as pivotal to the success of Western civilization. In a Dec. 4 statement on Twitter, he discussed the historical pattern of nations with reserve currency tending to inflate and spend deficits, ultimately losing their financial dominance. This was prompted by his observations of the US dollar as the global reserve currency and its future, in light of the rise of cryptocurrencies.
The challenges that other currencies, including the USD, Yuan, Euro, and Armstrong’s own Coinbase, face were noted. He stated: “The natural trend of whichever country has the reserve currency is to inflate the money supply and increase deficit spending until it loses that advantage.” Armstrong emphasized the role of crypto currencies as a counterbalance for inflation, providing people with an alternative fiat currency. However, he was quick to dispel the notion that this shift towards digital currencies poses a threat to the US dollar or the country’s economic stability.
Armstrong was asked about the importance of dollar-pegged coins. He suggested that opting for cryptocurrencies over another country’s fiat currency could be a more sensible choice in the current economic climate. Further, he stressed that the rise of cryptocurrency does not mean the end of fiat currency. Instead, Armstrong envisaged a world in which fiat and digital currency coexisted, with complementary roles within the global financial systems. Additionally, he noted that stablecoins like USDC pegged to the US dollar are expected to play a significant role in bridging these two financial domains. Armstrong’s reflections on these ideas and the potential for Bitcoin to influence the economic landscape and to act as a defender of economic stability for Western civilization were also noted.
