Coinbase CEO Warns Bitcoin Could Replace Dollar as US Debt Hits $36T

Coinbase CEO warns U.S. debt crisis could elevate Bitcoin’s role as global currency if fiscal control fails.

Fridah Kangai
June 6, 2025
6:58 pm

Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.

Coinbase CEO warns uncontrolled U.S. debt could push Bitcoin to global currency status
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Senator Lummis proposes storing 1 million BTC as a U.S. strategic reserve

Coinbase CEO Brian Armstrong issued a strong warning to the US’s national debt is now at a record $36 trillion. If the country’s debt grows further, he believes Bitcoin could take over the role of the world’s reserve currency instead of the US dollar.

According to Armstrong, a weakened financial base in the United States is bad news for the world. He stressed that while he supports Bitcoin, maintaining a stable and strong US economy is vital for global stability. At the same time, interest rates are going up, and the risk of a debt ceiling crisis has led to worries across financial markets.

If the electorate doesn't hold congress accountable to reducing the deficit, and start paying down the debt, Bitcoin is going to take over as reserve currency.

I love Bitcoin, but a strong America is also super important for the world. We need to get our finances under control. https://t.co/aeBE7pUuHo
— Brian Armstrong (@brian_armstrong) June 4, 2025

Currently, one Bitcoin is changing hands at $102,689, and while gold’s value has not jumped due to dollar weakness, institutional demand for it is increasing significantly. Armstrong’s remarks point out that Bitcoin could help people protect themselves from rising costs and possible errors by authorities.

Rising Debt Tensions Trigger Crypto Reserve Debate

Right now, Democrats and Republicans have divided opinions about the best plan. A spending bill proposed by Trump has produced a strong reaction, with people saying it could increase the national debt by another $3 trillion. The proposal offers tax reductions and improves the military’s budget while reducing certain social programs. Musk, head of Tesla, called the bill big and dangerous for the budget.

In another event, Senator Cynthia Lummis has introduced legislation aimed at holding Bitcoin in the US strategic reserve. The plan suggests buying around one million BTC, which represents five per cent of Bitcoin’s supply, to support the dollar and avoid extended fiscal risks. The digital assets would be managed and held in treasuries that are not under central control.

Yet, according to crypto analyst Wendy O, Bitcoin can be highly volatile, and it won’t play a major role as a global reserve currency. She described stablecoins as a better option for users despite people being interested in Bitcoin more often.

As the world grows less confident about politics and finances, Armstrong’s view on global currencies is part of a change in global opinions.

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