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Bitcoin As World Reserve? Coinbase CEO Says It’s Inevitable
As the global economy continues to be plagued by inflationary pressures and an escalating debt crisis, there is a growing narrative that cryptocurrency, particularly Bitcoin, could potentially displace fiat currencies as the world’s reserve asset. This notion has gained further traction following a recent statement made by Coinbase CEO Brian Armstrong, who believes that the probability of Bitcoin supplanting traditional currency in this capacity is inevitable.
Armstrong’s assertion was made during the annual State of Crypto Summit held on June 12th. The summit, attended by hundreds of policymakers and investors, saw the Coinbase executive emphasize his conviction that Bitcoin can provide a new means of stabilizing public finances through its algorithmically fixed 21 million-coin limit.
In his address, Armstrong highlighted the shortcomings of fiat currencies in serving both as a medium of exchange and store of value. Notably, he praised dollar-pegged stablecoins for effectively accomplishing the first task while cautioning that the US dollar’s lack of restraint in allowing deficit spending to spiral out of control could result in Bitcoin emerging as an important check on such behavior.
“Democracies around the world are really struggling to get their deficit spending under control,” Armstrong noted, before going on to propose his “crazy little bit-out-there idea.” Armstrong hypothesized that if public finances continue to deteriorate, people would seek refuge in times of uncertainty and subsequently favor Bitcoin as an alternative store of value.
The subtext behind these remarks lies in the United States’ burgeoning debt load. As it currently stands, this figure has swelled by almost $4 trillion over the past eighteen months alone. Armstrong’s suggestion that a global flight from sovereign currencies could be triggered by such fiscal mismanagement echoes sentiments he expressed previously, recommending Washington build a “strategic bitcoin reserve.”
The Coinbase CEO’s forecast appears to have landed on fertile ground, as it follows closely after a surprise keynote message delivered by President Donald Trump during the event. The president referred to Bitcoin as “an honor” and pledged support for the creation of dollar-backed stablecoins.
It is essential to note that Armstrong’s vision has garnered significant traction in light of recent events. In March, the White House officially published an executive order establishing a Strategic Bitcoin Reserve and US Digital Asset Stockpile, with instructions to consolidate forfeited BTC and procure more coins under budget-neutral conditions.
Source: bitcoinist.com
