The Future of Global Currency: Bitcoin’s Potential to Replace the US Dollar
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Could Bitcoin Become the World’s Reference Currency?
During the annual State of Crypto Summit on June 12, Brian Armstrong, co-founder and CEO of Coinbase, presented a groundbreaking idea: Bitcoin might one day replace the US dollar as the global reference currency. Armstrong, in a tweet, emphasized his belief, stating, “Bitcoin could be the reserve currency of the world.” This assertion was made in front of a captivated audience of policymakers, investors, and developers in Lower Manhattan.
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The Role of Bitcoin as a Global Reserve Currency
On stage, Armstrong highlighted the dual function of money as a medium of exchange and a store of value. He acknowledged the effectiveness of dollar-pegged stablecoins in the former but criticized fiat currencies for their failure in the latter. “Democracies worldwide face challenges in managing deficit spending,” he noted, introducing what he called his “bold and somewhat unconventional idea.”
As fiscal conditions continue to worsen, Armstrong suggested, “Bitcoin could serve as a crucial counterbalance to unchecked deficit spending. In times of uncertainty, people might turn to Bitcoin, potentially establishing it as the world’s new reserve currency.”
Armstrong’s perspective hinges on Bitcoin’s finite supply of 21 million coins, which he believes acts as a constraint on governments that frequently resort to deficit monetization. His remarks subtly alluded to the US debt situation, currently approaching $37 trillion, with nearly $4 trillion added in just the past eighteen months.
For months, Armstrong has been cautioning that unchecked fiscal policies could lead to a global shift away from sovereign currencies. In January, he penned a blog advocating for a “strategic bitcoin reserve” in the US, and in March, he joined other industry leaders for a crypto round-table at the White House.
Bitcoin’s Growing Influence: From Fringe to Policy Focus
Armstrong’s predictions resonated with attendees, particularly following a surprise keynote from President Donald Trump. The pre-recorded message highlighted Bitcoin’s transition from a niche interest to a central topic in macroeconomic policy. President Trump stated, “My administration collaborates with Congress to pass the GENIUS Act, promoting dollar-backed stablecoins, and we are creating clear market frameworks for the US to lead in crypto and Bitcoin innovation.” He expressed pride in being recognized as the first “crypto president.”
The White House has already initiated steps to back these claims. On March 6, Trump signed an executive order to establish a Strategic Bitcoin Reserve and a US Digital Asset Stockpile, instructing the Treasury to consolidate and potentially acquire more BTC under budget-neutral terms. Recently, Bo Hines, Executive Director of the President’s Council of Advisers on Digital Assets, announced that the Trump administration would soon reveal the Strategic Bitcoin Reserve’s framework.
As of the latest update, Bitcoin is trading at $104,876.
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