Coinbase CEO Brian Armstrong has raised the alarm over the growing U.S. debt, warning that Bitcoin could replace the dollar as the world’s reserve currency if the government fails to restore fiscal control. His remarks come as the national debt climbs past $36 trillion, with a debt-to-GDP ratio exceeding 122 percent and political tension rising ahead of the August 2025 ceiling deadline.
According to Armstrong on X, America’s failure to manage its spending could lead to long-term damage, allowing Bitcoin to take over as a dominant currency naturally. He stressed that while he supports Bitcoin, a strong U.S. economy remains vital for global stability. His statement urged voters to pressure Congress into adopting more responsible fiscal policies.
Besides Armstrong’s warning, investors’ interest in Bitcoin continues to grow. Institutions are increasingly treating the asset as a hedge against inflation due to its limited supply and decentralized nature. Still, even with the increasing distrust in conventional policy, Bitcoin’s value has not increased much. Bitcoin is trading for about $104,500, holding steady in the face of upcoming elections and the weakened dollar.
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Meanwhile, fiscal policies are under scrutiny and adding to market fears. A spending bill supported by President Donald Trump offers more tax cuts and recommends adding funds to defense programs. People have strongly opposed the bill for its many cuts to social programs and its estimated $3 trillion in additional debt if put into effect forever.
Elon Musk also criticized the bill, saying it was full of unnecessary expenses and was appalling. He said it might lead to an annual deficit of $2.5 trillion, spurring more demand for reforms. Many economists share the same concerns about continuing to borrow without control.
Bitcoin as a National Reserve Gains Political Attention
U.S. lawmakers are now exploring whether Bitcoin could serve as a national reserve asset. A new bill introduced by Senator Cynthia Lummis proposes that the Treasury accumulate up to 1 million BTC. This would represent about 5 percent of the total Bitcoin supply.
The Bitcoin vaults would be kept safely in various worldwide locations using assets in the Treasury’s current holdings. He explained that maintaining reserves such as gold would make the dollar stable and support federal security efforts.
Not everyone agrees that the dollar is a reserve currency. In Wendy O’s opinion Bitcoin is so volatile, it fails to meet the requirements for a store of value. She thinks that stablecoins could be stronger in the long run, but the demand for Bitcoin is likely to grow anyway.
Debt is rising, political disagreements are growing, and lingering economic uncertainty are making Armstrong’s statement more significant. Trust in traditional monetary systems is also declining, which is causing Bitcoin to be used more in global finance.
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