Bitcoin is seen as indirect support for USD`s global role

Coinbase (COIN) chief executive Brian Armstrong said Bitcoin offers competitive pressure that may help preserve the US dollar’s reserve currency status.

Speaking about crypto in an interview on “Tetragrammaton” with Rick Rubin, Armstrong said Bitcoin acts as a check on fiscal and monetary policy. He said excessive deficit spending or inflation could drive people toward Bitcoin during periods of uncertainty.

Armstrong said moderate inflation can be acceptable if economic growth keeps pace. He added that inflation exceeding growth risks undermining reserve currency status, which would damage the United States.

He said the presence of Bitcoin encourages the Federal Reserve and regulators to avoid actions that weaken confidence in the US economy. Armstrong said this dynamic may indirectly help extend the long-term strength of the dollar.

US debt levels have continued to rise sharply. The national debt has reached about $37.65 trillion, according to the US Congress Joint Economic Committee. The total is increasing by roughly $70,843 per second.

In October, JPMorgan described Bitcoin and gold as a hedge against currency debasement amid growing dollar uncertainty. Bitcoin reached a peak of $126,080 on Oct. 10 before falling about 30% to $88,210. Gold continued climbing, setting a record of $4,545 per ounce.

The Trump administration signed an executive order in March creating a Strategic Bitcoin Reserve. Some US senators said the initiative could help address rising debt. The reserve currently holds only seized Bitcoin and does not make new purchases. The Bitcoin Act of 2025 remains in early stages in Congress.

Some industry figures say stablecoins may play a larger role in supporting dollar dominance. Polygon Foundation chief executive Sandeep Nailwal said stablecoins create demand for US debt while expanding dollar use globally.

He said digital dollars are increasingly embedded in economies across Latin America and Africa. The US passed the GENIUS Act in July, establishing a regulatory framework for stablecoins.

The stablecoin market is valued at $312.6 billion. The US Treasury estimated the market could reach $2 trillion by 2028.