In a recent statement on X, Coinbase CEO Brian Armstrong said that he believes Bitcoin may be the key to sustaining the long-term success of Western civilisation. The Coinbase CEO also explained that he expects the rise of cryptocurrency to come in handy in combating inflation.
In the statement released on 4 December, Coinbase CEO Brian Armstrong discussed a historical pattern where countries with reserve currencies tend to experience inflation and deficit spending, eventually losing their financial dominance. This observation led him to examine the current global reserve currency, the US dollar, and its future amid the growing influence of cryptocurrencies.
Acknowledging the challenges faced by other potential reserve currencies such as the yuan and the euro, Armstrong noted that the idea of the US continuing with its inflationary policies is being challenged by the rise of cryptocurrencies. He emphasised the role of cryptocurrencies as a counterweight to inflation, giving people an alternative to traditional fiat currencies.
However, the CEO of one of the world's largest exchanges clarified that he does not see this shift to digital currencies as a threat to the US dollar or the country's economic stability. Instead, he sees cryptocurrencies as a valuable antidote to inflationary pressures that could potentially reshape the global financial structure.
Armstrong argued that the rise of cryptocurrencies should be seen as a natural checks and balances system, complementing the dollar and protecting long-term interests of America and the West. In his view, it may be wiser to choose cryptocurrencies over another country's fiat currency in the current economic conditions.
Importantly, Armstrong stressed that the rise of cryptocurrencies does not indicate the demise of fiat currencies. Instead, he foresaw a future in which fiat and digital currencies coexist, each playing a complementary role within the global financial system. In addition, he stressed the importance of stablecoins linked to the dollar, such as USDC, and foresaw a role for these stablecoins in bridging these two financial domains.
Christopher Calicott, co-founder and managing director at TVP, agreed with Armstrong's perspective and stressed that Bitcoin embodies the promise of property rights on which the West's prosperity has historically been built, but adapted to the internet age. Calicott suggested that without Bitcoin, there might be a diminished sense of hope, especially given the globally perceived technology-driven totalitarian tendencies.