On June 20, Brian Armstrong, CEO of Coinbase, came on X (formerly Twitter) to highlight the need for cryptocurrency in the current economic challenges, saying, “the world needs crypto, now more than ever.”
In a thread on X, Coinbase CEO writes, “Debt is growing exponentially, Inflation is crippling entire nations. Economic freedom is declining. It’s time to increase economic freedom globally, with crypto.”
Coinbase CEO Raises Concern Over Economic Turbulence
Currently, the world economy is facing headwinds due to an increase in trade tensions and heightened global policy uncertainty. Furthermore, the US’s tariff war with the rest of the world does not seem like rewarding the country under President Donald Trump’s administration.
The U.S. dollar has already fallen to its lowest point since 2022, marking its worst yearly start in decades. The U.S. dollar index (DXY) dropped to 98.6, the lowest since March 2022, and over 9% below its value at the year’s beginning.
Adding to these economic challenges around the world, there is a crisis of major war currently looming over the world. The ongoing conflict between Israel and Iran might escalate in the upcoming weeks if the U.S. joins this war, which could worsen the situation in the Middle East.
If POTUS decides to join the Israel-Iran war, it could spike oil prices amid a weak USD, which could spark global inflation. The dollar could crash further as investors flee to gold or cryptocurrency like Bitcoin.
Furthermore, trade disruptions may trigger recessions. U.S. debt costs, which currently stand at $36.22 trillion, would soar. It could strain budgets.
It will also impact the emerging stablecoin market backed by the dollar reserve. Sanctions could fragment global trade, accelerating de-dollarization.
Brian Armstrong said, “The US federal government debt is expanding exponentially. This isn’t just a US problem; it’s a global one across democracies. People are feeling a lack of trust in their money and deficit spending.”
Coinbase is currently planning to expand its operations.
However, the popular cryptocurrencies like Bitcoin are rapidly gaining mainstream adoption, allowing institutional investors to capitalize on cryptocurrency products available on Wall Street and other stock exchanges.
For example, the total assets under management (AUM) across all Bitcoin ETFs currently revolve around $126.44 billion, with a 24-hour trading volume of $4.17 billion.
Furthermore, legislative efforts for clear regulatory guidelines are boosting market confidence. Establishment of Bitcoin reserve in the U.S. and Senate approval of the GENIUS Act have pumped the crypto market, sparking a historical rally in Bitcoin (BTC).
“While Bitcoin is a store of value, stablecoins are the medium of exchange. The stablecoin market cap is up 50%+ year-over-year, uncorrelated with crypto trading volume. This is crypto’s next daily use case, and it’s just the beginning,” the Coinbase CEO said.
Donald Trump’s crypto-friendly administration is also working in a direction to foster crypto innovation.
Earlier this week, Treasury Secretary Scott Bessent said, “Crypto is not a threat to the dollar. In fact, stablecoins can reinforce dollar supremacy. Digital assets are one of the most important phenomena in the world right now, yet they have been ignored by national governments for far too long.
“This administration is committed to establishing the United States as a hub for digital asset innovation, and the GENIUS Act moves us one step closer to that goal,” he added further.
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