Coinbase CEO Brian Armstrong has argued that Bitcoin is actually a net positive for the US dollar, which is a rather contrarian take.
In the 2010s, for comparison, the prevailing view was that Bitcoin could only succeed if the U.S. lost.
Armstrong’s point is that BTC creates competition in a way that’s healthy for the dollar. This helps to provide a check and balance against high inflation and deficit spending.
"I would say that Bitcoin provides a check and balance on the dollar…if there is too much deficit spending or inflation in the US, people will flee to Bitcoin in times of uncertainty," he said.
He has noted that the incentives are actually not aligned for balancing the budget. "...if your inflation outstrips the growth of the economy, you will eventually lose the reserve currency status, and that would be a massive blow to the US," he said.
The deficit issue
The rather grim fiscal landscape of 2025 has provided ample ammunition for crypto evangelists.
Earlier this year, the national debt ($1 trillion) officially surpassed the entire National Defense budget ($917 billion).
Armstrong has also been a vocal supporter of the Department of Government Efficiency (D.O.G.E), which was initially led by Elon Musk.
The Coinbase boss has argued that that deficit could be tamed by bringing modern technology to the government's balance sheet.
Supercharging US dollar
Senator Cynthia Lummis (R-WY), who announced her retirement, is also convinced that Bitcoin could potentially supercharge the U.S. dollar.
She argued that it was necessary to create a strategic Bitcoin reserve to bolster the greenback with a hard currency.
This "pro-dollar via Bitcoin" narrative has also been adopted by MicroStrategy Executive Chairman Michael Saylor. The billionaire is convinced that the US could strengthen its national balance sheet with digital capital.
Survival tactic
The sudden narrative change within the cryptocurrency space is mainly viewed as a survival tactic.
The industry has successfully managed to cluster various institutions and win political favors by rebranding BTC as the asset that actually backs the system instead of attempting to dismantle it.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team