Coinbase CEO Makes Stunning Bitcoin Statement in Davos

Coinbase CEO Brian Armstrong is convinced that the "Bitcoin standard" is already replacing the legacy financial system.

He has noted that people tend to think that people tend to think that the current system, where central banks do not have links to any hard commodity underneath, is "sacrosanct." However, it was created relatively recently when former US President Richard Nixon went off the gold standard in 1971.

Armstrong believes that fiat currencies will continue to exist "for a long time," but a new monetary system is already emerging.

"We are also seeing the birth of a new monetary system that I would call the 'Bitcoin standard' instead of the gold standard," he said while speaking during a panel at the World Economic Forum (WEF) that is currently taking place in Davos, Switzerland.

When it comes to the crypto space, this marks a return to sound money, which is something that is inflation-resistant.

Western democracies are currently facing major problems with budget deficits, Armstrong adds. "There is a real segment of the population that is looking for a new system based on hard money," Armstrong adds.

Crypto is good for fiat currencies

During the panel discussion, Armstrong stated that crypto is actually good for fiat currencies.

"I think that crypto is very good for fiat currencies. It's very good. Bitcoin is as good as a check and balance on deficit spending," he said.

In general, crypto is going to be "very complementary," according to the Coinbase boss.