Bitcoin’s relationship with the US dollar is undergoing a narrative shift, led by unexpected voices from within the crypto industry. Coinbase Chief Executive Brian Armstrong has argued that Bitcoin does not threaten the dollar. Instead, he believes it reinforces fiscal discipline by introducing meaningful monetary competition. This view marks a clear break from earlier assumptions that Bitcoin could only thrive if the US financial system weakened. As deficits rise and debt servicing costs grow, Armstrong’s position reframes Bitcoin as a stabilizing force rather than a disruptive rival. Bitcoin as a Fiscal Pressure Tool Armstrong has consistently framed Bitcoin as an external check on US fiscal behavior. He argues that alternative monetary systems create accountability during periods of inflation and heavy deficit spending. Consequently, policymakers face pressure to manage budgets more responsibly to maintain global confidence in the dollar. Armstrong has stressed that reserve currency status depends on aligning inflation with economic growth. Hence, prolonged fiscal imbalance could weaken the dollar’s dominance over time. Significantly, current budget figures support this concern. In 2025, US interest payments surpassed $1 trillion, exceeding the national defense budget of $917 billion. These numbers have fueled debates around long-term sustainability. Armstrong has suggested that modern financial infrastructure, paired with digital assets, could improve transparency across government balance sheets. Moreover, he has publicly supported initiatives that emphasize efficiency and technological reform within public finance systems. Reserve Currency Debate Gains Traction Beyond fiscal discipline, Armstrong has previously suggested Bitcoin could evolve into a reserve asset if debt trends remain unchecked. He has argued that failure to manage deficits may gradually push institutions toward alternative stores of value. However, he has also emphasized that a strong US economy remains essential for global stability. Additionally, he has urged lawmakers to reduce debt levels before reserve currency credibility erodes. This perspective aligns with comments from Senator Cynthia Lummis, who has supported the idea of a strategic Bitcoin reserve. She has argued that hard digital assets could strengthen the dollar rather than replace it. Moreover, MicroStrategy Executive Chairman Michael Saylor has echoed similar views, claiming digital capital could reinforce national balance sheets. Regulation, Stablecoins, and Industry Survival The crypto sector has also adjusted its messaging to align with regulatory realities. Industry leaders now present Bitcoin as complementary to existing systems. Armstrong has criticized efforts to revisit the GENIUS Act, arguing such moves could slow innovation. Additionally, he has opposed restrictions on stablecoin yields, claiming they limit competition without improving consumer protection.
