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In a recent statement, Coinbase CEO Brian Armstrong explores the idea that Bitcoin might hold the key to prolonging the success of western civilization.
Armstrong explained that throughout history, nations with reserve currencies tend to inflate and engage in deficit spending until losing that edge.
Armstrong Believes Fiat Will Stick Around
Brian Armstrong explains that the Yuan and Euro face their own challenges and aren’t viable alternatives. He notes the assumption is that the U.S. can persist in inflation. Yet, a significant factor often overlooked is the rise of cryptocurrency.
“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.”
He reiterates this provides people with an option to counter inflation by shifting from fiat to crypto.
However, contrary to concerns, he says this shift isn’t a threat to the dollar or the U.S.
Armstrong Highlights Importance of Stablecoins
Instead, it acts as a natural check and balance. Complementing the dollar and serving as a defender of long-term American interests and western civilization. Opting for crypto over another country’s fiat emerges as a more prudent move.
Armstrong emphasizes that this transition doesn’t signal the end of fiat. Rather, fiat and crypto are likely to coexist for an extended period, operating as complements rather than substitutes.
He further states that dollar-backed stable coins, such as USDC, are expected to play a crucial role in bridging these two financial realms.
Armstrong reflects on these ideas, the potential for Bitcoin to influence the economic landscape, acting as a defender of economic stability and the values of western civilization.