Brian Armstrong Declares Bitcoin Serves as Critical "Check and Balance" on US Dollar

Forget gold—the new monetary watchdog runs on code. Brian Armstrong, the CEO of Coinbase, just framed Bitcoin not as a speculative asset, but as a fundamental counterweight to fiat power.

The Digital Discipline

Armstrong's argument cuts to the core of modern finance. When central banks print money—a favorite pastime during crises—Bitcoin's algorithm says no. Its fixed supply acts as a hard stop, a built-in governor against the devaluation Armstrong implies is baked into the current system. It's a bypass around monetary policy committees and political pressure.

Not an Attack, a Backup

This isn't a call to abandon the dollar. Think of it as a systemic redundancy. A verifiable, global ledger that operates outside any single nation's control provides a real-time audit on currency health. It makes the invisible cost of inflation starkly visible to anyone with a smartphone—a feature traditional finance often treats as a bug, or just another line item in a quarterly report to shareholders.

The ultimate provocation? In an era where financial stability is managed by speeches and spreadsheets, Bitcoin offers physics. Its rules are enforced by network consensus, not committee votes. That might be the most powerful check of all—even if Wall Street still prefers its balance sheets with a healthy dose of creative accounting.

Armstrong Warns Inflation Without Growth Could Cost Dollar Its Reserve Status

Armstrong added that moderate inflation can be manageable if matched by economic growth, but warned that persistent imbalances could carry serious consequences.

“If inflation outstrips growth, you’ll eventually lose reserve currency status,” he said, describing such an outcome as a severe blow to the United States.

In Armstrong’s view, Bitcoin’s existence indirectly restrains policy missteps by signaling that capital has alternatives.

That dynamic, he argued, incentivizes central banks and regulators to protect confidence in the US economy. “In a strange way, Bitcoin is helping extend the American experiment,” he said.

The comments come as fiscal pressures intensify. US national debt has climbed to roughly $37.65 trillion and is increasing by more than $70,000 per second, according to data from the US Congress Joint Economic Committee.

The scale and pace of borrowing have reignited debate over long-term dollar stability and the role of hard assets during periods of monetary strain.

Market behavior has reflected those concerns. In October, JPMorgan framed Bitcoin and Gold as part of a “debasement trade” amid rising uncertainty around the dollar.

Bitcoin surged to a peak above $126,000 before pulling back roughly 30%, while gold continued to set new highs, underscoring diverging investor preferences.

Washington has also taken tentative steps toward integrating Bitcoin into its financial framework.

In March, the TRUMP administration signed an executive order establishing a Strategic Bitcoin Reserve, though it currently consists only of seized assets.

The proposed Bitcoin Act of 2025, which WOULD formalize the reserve, remains in early stages in Congress.

Stablecoins, Not Bitcoin, May Do More to Extend Dollar Dominance

However, some industry figures argue that stablecoins may be more effective at reinforcing dollar dominance than Bitcoin itself.

Polygon Foundation CEO Sandeep Nailwal has said dollar-backed stablecoins are driving demand for US debt while expanding the dollar’s reach globally.

“Dollarisation 2.0 is happening in real time,” he said, pointing to adoption across Latin America and Africa.

Contrarian take:
The Dollar is set to become more powerful than ever in the “short to medium term” — contrary to @RayDalio’s predictions.

Why? Stablecoins.
They don’t just create persistent demand for U.S. debt — they’re transforming the dollar’s relationship with the world from…

The regulatory groundwork is already forming. The US passed the GENIUS Act in July, establishing one of the most comprehensive frameworks for stablecoins to date.

Looking ahead to 2026, the industry remains divided. Strategy CEO Phong Le has argued that Bitcoin’s underlying fundamentals held up throughout 2025 despite weaker prices, while Bitwise chief investment officer Matt Hougan said earlier this year that he expects 2026 to be an “up year” for the asset.

According to Linh Tran, market analyst at XS.com, Bitcoin’s recent price action underscores the market’s sensitivity to monetary policy expectations rather than headline economic data.