Brian Armstrong: Bitcoin Serves as a "Check and Balance" on the US Dollar

Brian Armstrong Says Bitcoin Acts as a “Check and Balance” on US Dollar

Coinbase CEO Brian Armstrong asserts that Bitcoin plays a crucial role in the global financial system by influencing US policymakers to exercise fiscal responsibility. He argues that this digital asset ultimately supports the long-term value of the dollar.

Key Takeaways:

Armstrong believes Bitcoin helps monitor US fiscal policy.
He warns that inflation without economic growth might undermine the dollar’s status as a reserve currency.
Increased national debt is leading investors to turn toward Bitcoin and gold as alternatives.

In a recent discussion on the Tetragrammaton podcast with Rick Rubin, Armstrong explained that Bitcoin provides an alternative when confidence in conventional monetary policy diminishes. He remarked, “Bitcoin acts as a check and balance on the dollar,” highlighting that during times of rising deficits or inflation, investors may seek safe havens outside traditional fiat currencies.

The Risks of Inflation Without Growth

Armstrong elaborated that while moderate inflation can be manageable if it coincides with economic growth, persistent imbalances could lead to significant challenges. He stated, “If inflation exceeds growth, you could ultimately lose your reserve currency status,” warning of dire consequences for the United States.

According to Armstrong, the presence of Bitcoin helps regulate policy errors by indicating that capital has other options. He believes this dynamic encourages central banks and regulators to maintain trust in the US economy. “In a strange way, Bitcoin supports the American experiment,” he added.

These insights come in the context of escalating fiscal pressures. The US national debt has surged to approximately $37.65 trillion and is increasing at a rate of over $70,000 per second, based on data from the US Congress Joint Economic Committee.

The significance and urgency of borrowing have sparked discussions about the long-term stability of the dollar and the importance of hard assets during monetary distress.

Recent market activity has mirrored these concerns. In October, JPMorgan categorized Bitcoin and gold as part of a "debasement trade" amid growing apprehension regarding the dollar's stability.

Bitcoin reached an all-time high exceeding $126,000 before retracing nearly 30%, while gold has consistently achieved new heights, reflecting divergent investor preferences.

Developments in Washington Regarding Bitcoin

Washington has also begun to explore the integration of Bitcoin into its financial system. In March, the Trump administration enacted an executive order to create a Strategic Bitcoin Reserve, although it currently only includes confiscated assets. The proposed Bitcoin Act of 2025 aims to formalize this reserve but is still in the introductory phases in Congress.

Stablecoins vs. Bitcoin: The Future of Dollar Dominance

Nonetheless, some industry experts contend that stablecoins might reinforce the dollar's dominance more effectively than Bitcoin. Sandeep Nailwal, CEO of Polygon Foundation, claimed that dollar-backed stablecoins are fueling demand for US debt and expanding the global reach of the dollar. “Dollarization 2.0 is unfolding in real time,” he noted, citing adoption trends in Latin America and Africa.

The regulatory framework is evolving, with the US passing the GENIUS Act in July, which established one of the most comprehensive regulations for stablecoins thus far.

As we look ahead to 2026, the industry appears divided on Bitcoin’s future. Strategy CEO Phong Le pointed out that Bitcoin’s fundamental strength remained despite a dip in prices during 2025. Conversely, Matt Hougan, chief investment officer at Bitwise, expressed optimism earlier this year, predicting that 2026 would be an “up year” for Bitcoin.

Linh Tran, a market analyst at XS.com, indicated that Bitcoin's recent price movements reflect the market's focus on anticipated monetary policies rather than just economic indicators.