Coinbase CEO Brian Armstrong Drops Bombshell: Bitcoin Could Be Propping Up the US Dollar

Forget the old narrative. The latest take from a crypto titan flips the script on its head.

The Unlikely Alliance

Brian Armstrong, the man at the helm of America's largest crypto exchange, just suggested Bitcoin might be playing an unexpected role in global finance. Instead of undermining the greenback, the original cryptocurrency could be acting as a silent partner—bolstering the very system it was designed to bypass.

How Does That Even Work?

Think global capital flows. As institutional money piles into Bitcoin as a digital reserve asset, that capital often originates in—and ultimately cycles back to—dollar-denominated markets. It's a twist that would make a traditional banker's head spin: a decentralized asset potentially reinforcing the central currency it was meant to challenge. Talk about an ironic plot twist for the finance bros who still think crypto is just for buying pizza.

The Bigger Picture

This isn't just academic. Armstrong's perspective hints at a maturing market where digital assets aren't just speculative toys but are becoming interwoven with the legacy financial fabric. It suggests a future of coexistence, not just conquest.

So, is Bitcoin the dollar's unlikely hero? The idea cuts against the grain of crypto's rebel ethos, but in the messy, real world of global capital, the most disruptive technologies often end up propping up the very institutions they sought to replace. Just ask the Wall Street firms now mining profits from the blockchain they once mocked.

Bitcoin has long been seen as a hedge against the US dollar. But Coinbase CEO Brian Armstrong is making a different case – one that’s gaining attention as America’s debt problem keeps growing.

Armstrong believes Bitcoin is not a threat to the dollar. Instead, he says it may actually help keep it strong.

“Bitcoin is good for USD,” Armstrong said, arguing that bitcoin creates healthy competition that pressures governments to stay disciplined.

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

Bitcoin as a Pressure Valve for the Dollar

According to Armstrong, Bitcoin acts as a financial escape hatch when trust in government policy starts to weaken.

“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,” he said.

That possibility, he argues, forces policymakers to think twice before letting inflation spiral. Armstrong warned that if inflation continues to outpace economic growth, the US could eventually lose its reserve currency status – something he described as “a massive blow” to the country.

“It might be okay to have 2-3% inflation if the economy is growing at 2-3%,” he said. “But if inflation outstrips the growth of the economy, you’ll eventually lose the reserve currency status.”

Why This Argument Now?

US national debt has climbed to about $37.65 trillion and is growing by more than $70,000 every second. Earlier this year, interest payments on that debt surpassed the country’s entire defense budget.

Armstrong has pointed to these numbers as proof that current incentives don’t encourage balanced budgets. He has also supported efforts to modernize government operations, saying technology could help reduce waste and improve efficiency.

Crypto Community Reacts

Armstrong’s comments quickly sparked discussion online.

Many users agreed with his framing, with one popular reaction stating, “Competition creates accountability. Bitcoin is the check. Inflation is the problem.”

Others weren’t convinced. Some pushed back, saying the perspective doesn’t address the dollar’s intrinsic value.

Bitcoin’s Role Is Changing

The idea that Bitcoin could support the dollar, rather than replace it, is gaining ground. Senator Cynthia Lummis has said Bitcoin could strengthen the US financial position, while Strategy’s Michael Saylor has framed it as digital capital for national balance sheets. Texas has already kick-started its strategic reserve.

The value is clear. Bitcoin has a big role to play.