tl;dr
Coinbase CEO Brian Armstrong warned that without congressional action to address the $37 trillion U.S. debt, Bitcoin could become the world's next reserve currency. He emphasized the importance of a strong America and fiscal responsibility. The recent House Republican bill, which extends tax cuts, i...
Coinbase CEO Brian Armstrong warns that unchecked U.S. debt could propel Bitcoin to become the world's next reserve currency. He emphasizes the urgent need for Congress to address the soaring $37 trillion national debt to maintain a strong America. Armstrong’s concerns emerge as House Republicans pass a spending bill that increases debt by extending tax cuts, boosting military spending, and cutting social programs, sparking widespread debate.
Institutional investors and U.S. states are increasingly interested in Bitcoin, attracted by its fixed supply and inflation-resistant design. Some states are actively stockpiling Bitcoin to shield their finances from federal money printing and the resulting dollar devaluation. New Hampshire Rep. Keith Ammon highlights that states are competing not just among themselves but against a federal government forced to print more money to service its debt.
Meanwhile, six Nobel Prize-winning economists, including Paul Krugman and Joseph Stiglitz, criticize the bill for widening inequality and adding over $3 trillion to public debt. Elon Musk also condemns the legislation as an irresponsible, “pork-filled” spending spree that will massively increase America’s budget deficit to $2.5 trillion and saddle citizens with unsustainable debt.
Critics argue that the bill could accelerate global efforts to de-dollarize, boosting Bitcoin demand as investors seek a hedge against fiat currency inflation. Komodo Platform CTO Kadan Stadelmann points out that Bitcoin was designed as a safe haven to oppose inflationary monetary policies and growing national debts. He warns that mounting U.S. debt risks a dollar collapse, which could trigger a surge into Bitcoin, potentially causing a supply shortage.
The fiscal strain of rising debt and the expanding deficit have reignited debate about the dollar’s long-term viability and Bitcoin’s emerging role as a global financial safeguard. As policymakers debate, investors and states alike are watching closely, considering whether Bitcoin might soon claim its place as the world’s next reserve currency.