In a nutshell
- Coinbase CEO Brian Armstrong warns that escalating US debt may pave the way for Bitcoin to dethrone the dollar as the global reserve currency.
- With mounting deficits and money printing, the trust in the greenback is eroding, causing states like New Hampshire and Arizona to hoard Bitcoin.
- Armstrong's concern over the debt crisis arose as House Republicans passed the Trump-endorsed "big, beautiful bill" in May, which extended tax cuts, beefed up military spending, and slashed Medicaid, food aid, and clean energy investments.
- Critics contend that this measure could exacerbate inequality and debt, while Elon Musk labelled it a "disgusting abomination."
- The Senate's upcoming move on the bill could have far-reaching effects beyond finance, including accelerating de-dollarization efforts globally.
- Kadan Stadelmann, Commodo Platform CTO, believes that Bitcoin, created in 2008 following the financial crisis, offers a shelter from the inflationary monetary system and potential supply crunch due to a dollar collapse.
Scene's digital playground
Global Economic Uncertainty May Elevate Bitcoin as Global Reserve Currency, Suggests Coinbase CEO's Proposition
Brian Armstrong, CEO of Coinbase, recently cautioned on Twitter that if Congress fails to address the staggering $37 trillion US debt, Bitcoin could surpass the dollar as the world's preferred reserve currency. "I adore Bitcoin, but maintaining a financially sound America is equally crucial for the world," Armstrong twitted on Tuesday, emphasizing the need to rein in spending.
This warning comes against the backdrop of the "big, beautiful bill," endorsed by Trump in May, which has House Republicans scrambling. This legislation, promoted as a tax cut extender and military spending booster, also reduces funding for Medicaid, food aid, and clean energy initiatives.
The financial strain catalyzes Bitcoin interest, given its limited supply and resistance to inflation. Consequently, Bitcoin seems increasingly appealing to institutions and state governments, leading Rep. Keith Ammon of New Hampshire to question, “Decrypt-style**, "When it comes to Bitcoin stacking, U.S. states aren't merely competing against each other; they're competing against a federal government forced to print money to manage its debt."
This federal government approach, as Ammon sees it, poses a long-term threat to the dollar's value, prompting him to advocate for Bitcoin as a hedge against further erosion.
Six Nobel Prize-winning economists, including Paul Krugman and Joseph Stiglitz, expressed concern in a June letter that the bill's provisions could drive accumulated debt past $3 trillion and increase inequality. In a tweet on Tuesday, Elon Musk called the measure a "massive, outrageous, and pork-filled spending bill," further criticizing the bill as a "disgusting abomination" https://t.co/dHCj3pprJO.
As critics view it, the Senate's move on the bill could impose greater consequences than merely fiscal strain. The bill may ultimately spur increasing efforts to de-dollarize the global economy. According to Kadan Stadelmann, Commodo Platform's CTO, "The U.S. isn't facing reality, and it's where Bitcoin comes into play, representing a large part of the reason why Satoshi Nakamoto developed it in 2008."
Bitcoin stands in opposition to conventional currencies, apparently outliving their usefulness in a world suffering from hundreds of billions of dollars in debt annually. Stadelmann connects the national debt with rising crypto demand: "The debt could lead to a dollar collapse, prompting individuals to flock to Bitcoin, causing a supply crunch."
Edited by Sebastian Sinclair
Daily Brief Newsletter
Information sourced from: Bloomberg, Reuters, CNBC, Fortune, and Decrypt, June 1-7, 2025.
Some Naughty Notes:- Moody's downgraded U.S. debt in May 2025; (Wall Street Journal)- Top economists have concerns about U.S. debt levels; (The Guardian)- Coinbase CEO warns of Bitcoin's potential takeover; (WSJ)- Elon Musk calls U.S. debt bill "disgusting abomination"; (CNBC)- Bitcoin demand linked to national debt; (Bloomberg)
- Brian Armstrong, CEO of Coinbase, expressed his concerns about the US debt crisis on Twitter, stating that if not addressed, Bitcoin could surpass the dollar as the world's preferred reserve currency.
- The passing of the "big, beautiful bill" endorsed by Trump in May, which House Republicans promoted as a tax cut extender and military spending booster, has raised concerns among critics due to its potential to exacerbate inequality and debt.
- Rep. Keith Ammon of New Hampshire questioned whether US states are competing against each other in Bitcoin stacking, or against a federal government forced to print money to manage its debt.
- Kadan Stadelmann, Commodo Platform CTO, believes that the national debt could lead to a dollar collapse, causing individuals to flock to Bitcoin, creating a potential supply crunch in the crypto market.
