Brian Armstrong, the CEO of Coinbase, stated that Bitcoin creates valuable competition for the US dollar, which encourages policymakers to uphold fiscal responsibility and reinforces the US dollar’s position of power.
Armstrong argued in a Tetragrammation interview with Rick Rubin that “[Bitcoin] provides a necessary check and balance on the dollar; if there is excessive deficit spending or inflation, people will turn to Bitcoin during periods of uncertainty.”
He elaborated, stating, “While a 2-3% inflation rate might be manageable if the economy is growing at the same rate, if inflation surpasses economic growth, the US risks losing its reserve currency status, which would be a significant setback for the nation.”
Armstrong noted that Bitcoin (BTC) plays an indirect role in monitoring the dollar by compelling the Federal Reserve and financial regulators to refrain from actions that could erode trust in the US economy.
He concluded, “In an unexpected way, Bitcoin contributes to extending the American experiment.”
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. pic.twitter.com/iHjQCJVqCb
— Brian Armstrong (@brian_armstrong) December 28, 2025
America’s debt is growing at $6B a day, nearing $38T
The US national debt has surged to $37.65 trillion, increasing by $70,843 every second — or nearly $4.25 million per minute — according to the US Congress Joint Economic Committee’s debt dashboard.
In early October, JPMorgan highlighted Bitcoin and gold as viable options amid growing dollar uncertainty.
Bitcoin reached a peak of $126,080 on Oct. 10 but has since dropped 30% to $88,210, while gold set a new record of $4,545 per ounce on Friday.
The Trump administration enacted an executive order in March to create a Strategic Bitcoin Reserve, a step several US Senators believe may alleviate the country’s escalating debt.
Nonetheless, the reserve is currently accumulating seized Bitcoin rather than purchasing additional assets, and the Bitcoin Act of 2025 — which aims to support the SBR — remains in the preliminary stages in Congress.
Stablecoins may do better at preserving dollar dominance
Some industry experts contend that stablecoins play a more significant role in solidifying the US dollar’s status as the reserve currency than Bitcoin.
Related: Crypto sentiment holds ‘extreme fear’ for 14th straight day
According to Polygon Foundation CEO Sandeep Nailwal, stablecoins are increasing demand for US debt while also distributing the US dollar to individuals and businesses globally, as he noted last month.
“Dollarisation 2.0 is happening in real time — from LatAm to Africa, entire economies are being rewired around digital dollars.”
The US legislative body passed the GENIUS Act in mid-July, which is regarded as one of the most comprehensive stablecoin frameworks to date.
The current stablecoin market stands at $312.6 billion, a figure that the US Treasury estimated could grow to $2 trillion by 2028.
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