Bitcoin Could Replace Dollar If U.S. Debt Grows – Coinbase CEO

Brian Armstrong, the CEO of Coinbase, has issued a stark warning about the U.S. national debt and its potential consequences.

Armstrong’s warning came after a significant rise in the U.S. debt, now exceeding $36 trillion, signaling the risk of a global economic shift.

He suggested that if U.S. lawmakers fail to address the growing debt, Bitcoin could eventually replace the U.S. dollar as the world’s reserve currency.

Armstrong’s comments came in response to a tweet from World of Statistics, which shared alarming figures showing the steady rise of the national debt.

Armstrong, while expressing his fondness for Bitcoin, emphasized that a strong America is crucial for global stability.

He urged the electorate to hold Congress accountable and take steps to reduce the deficit and address the nation’s debt problem.

U.S. Debt Reaches Record Levels

In 2025, the U.S. national debt reached $36.9 trillion which is $2.9 trillion more than the 2023 figure of $34 trillion.

Experts are concerned about how quickly these reserves have built up, as it could mean big consequences in the future.

Over the years, the national debt has constantly risen and there has been a major increase in recent times.

This upsurge is due to increasing social program costs, spending on the pandemic and no desire among political parties to increase taxes or cut favorite programs.

The rapid increase in the national debt poses several risks. It could lead to higher interest payments, which already consume a significant portion of government revenue.

According to estimates from the Congressional Budget Office, interest payments on the federal debt alone could reach $1 trillion this year and might double by the mid-2030s.

This situation could limit the government’s ability to fund essential programs, leading to potential economic instability.

Armstrong’s Warning and Bitcoin’s Potential

Coinbase CEO Brian Armstrong believes that Bitcoin may replace the U.S. dollar because he is concerned about the country’s unchecked debt.

He noted that if U.S. debt continues rising, the dollar’s status as the chief reserve currency might be put at risk.

According to Armstrong, Bitcoin may take on the worldwide role as a reserve currency if the debt burden continues to grow without any action to counter it.

Over the past years, more people are making the case for Bitcoin as an alternative to traditional reserve assets with firms like Strategy, Tether, Galaxy Digital and even countries like the US, El Salvador making Bitcoin acquisitions in large percentage.

Advocates for Bitcoin believe it offers a different option to fiat currencies by being transparent, decentralized and limited in supply, protecting against inflation and control by political forces.

While some are concerned by how much Bitcoin fluctuates, those who back the crypto think it can potentially protect assets against the usual issues seen with traditional currencies.

Reactions from Other Prominent Figures

Coinbase CEO Armstrong’s comments sparked a range of reactions from other prominent figures in both the cryptocurrency and traditional finance sectors.

Crypto influencer Wendy O also weighed in, expressing skepticism about Bitcoin’s potential to replace the dollar as the reserve currency due to its volatility.

“Bitcoin will never be a reserve currency because of its volatility. But it will be desired. A stablecoin… yes,” Wendy O stated, emphasizing the role of stablecoins in the future of digital assets.

Elon Musk, who has previously expressed strong views on the need for fiscal responsibility, also chimed in on the conversation.

Musk, frustrated by U.S. government spending, criticized Congress for approving large spending bills without sufficient cuts to the deficit.

He also reiterated his concerns about the growing U.S. debt and the potential long-term consequences, such as an eventual collapse of the U.S. dollar’s dominance in the global economy.

Peter Schiff’s Criticism of U.S. Debt and Government Spending

Peter Schiff, an economist and financial commentator, has been an outspoken critic of U.S. government spending and its long-term economic consequences.

Schiff echoed Armstrong’s concerns about the rise in U.S. debt but took a more direct stance against the U.S. dollar and its future stability.

Schiff has long advocated for sound money policies, arguing that excessive government borrowing and money printing would eventually lead to a financial collapse.

Schiff expressed his frustration with the U.S. government’s approach to fiscal management, calling it unsustainable.

He has repeatedly warned that the increasing national debt could eventually lead to a loss of confidence in the dollar.

In recent X post, Schiff shared his support for Armstrong’s views on the risk of rising debt but also stressed that Bitcoin, or other alternatives, might be the only viable solutions in the long run.

He has consistently argued that the U.S. dollar’s status as the world’s reserve currency is at risk due to the country’s growing fiscal irresponsibility.

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