Coinbase CEO Believes Fiat and Crypto Will Co-Exist in the Long Term
In a recent statement on X, Coinbase CEO Brian Armstrong said he believes that Bitcoin might hold the key to support Western civilization’s long-term success.
The Coinbase CEO also explained that he sees the rise of cryptocurrency coming in handy for countering inflation.
Digital Currency Surge Not a Threat to US Dollar
In the statement released on December 4, Coinbase CEO Brian Armstrong discussed a historical pattern where nations with reserve currencies tend to engage in inflation and deficit spending, eventually losing their financial dominance.
This observation led him to examine the current global reserve currency, the U.S. dollar, and its future amid the rising influence of cryptocurrencies.
One idea I’ve been contemplating is that Bitcoin may be the key to extending western civilization.
The natural trend of whichever country has the reserve currency is to inflate the money supply and increase deficit spending until it loses that advantage. The U.S. is somewhere on…
— Brian Armstrong
(@brian_armstrong) December 3, 2023
Recognizing the challenges faced by other potential reserve currencies like the Yuan and Euro, Armstrong noted that the assumption of the U.S. continuing its inflationary policies is being questioned due to the emergence of cryptocurrencies.
He emphasized the role of cryptocurrencies as a counterbalance to inflation, providing people with an alternative to traditional fiat currencies.
However, Armstrong clarified that he does not see this shift towards digital currencies threatening the U.S. dollar or the country’s economic stability. Instead, he views cryptocurrencies as a valuable countermeasure to inflationary pressures, potentially reshaping the global financial landscape.
Armstrong Spotlights the Importance of Stablecoins
Armstrong argued that the rise of cryptocurrencies should be perceived as a natural check and balance system, complementing the dollar and protecting long-term American and Western interests. In his view, choosing cryptocurrencies over another country’s fiat currency might be more prudent in the current economic climate.
Importantly, Armstrong stressed that the ascent of cryptocurrencies does not indicate the demise of fiat currencies. Instead, he envisioned a future where fiat and digital currencies co-exist, each playing complementary roles within the global financial system.
Additionally, he highlighted the significance of stablecoins pegged to the dollar, such as USDC, anticipating their role in bridging these two financial domains.
Christopher Calicott, the co-founder and managing director at TVP, agreed with Armstrong’s outlook and emphasized that Bitcoin embodies the promise of property rights that the West’s prosperity has historically been built upon but has been adapted for the Internet Age. Calicott suggested that, in the absence of Bitcoin, there might be a diminished sense of hope, especially considering the technology-driven totalitarian tendencies observed globally.
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