Could Bitcoin Replace USD? Coinbase CEO Flags Risk as US Debt Hits $37 Trillion

Coinbase CEO Brian Armstrong has warned that Bitcoin could eventually replace the USD as the world’s reserve currency if lawmakers fail to address America’s spiraling debt.

“I love Bitcoin, but a strong America is also super important for the world,” Armstrong posted on X Tuesday. “We need to get our finances under control.”

The U.S. national debt recently crossed $37 trillion, adding fresh urgency to concerns about long-term fiscal stability.

Trump-Backed Spending Bill Advances as US Debt Worries Mount

Armstrong’s comments come as House Republicans advance a Trump-backed spending bill that extends tax cuts, boosts military funding, and slashes programs like Medicaid, food aid, and clean energy.

Critics argue the legislation would worsen the debt outlook.

A group of six Nobel Prize-winning economists, including Paul Krugman and Joseph Stiglitz, warned in a June letter that the bill could push public debt even higher, by at least $3 trillion, if its provisions are made permanent.

The growing debt burden is drawing new attention to Bitcoin, which was designed after the 2008 financial crisis as a fixed-supply, inflation-resistant asset.

With institutional demand rising, some analysts say BTC is becoming an increasingly credible hedge.

Tesla CEO Elon Musk also weighed in, blasting the spending bill as a “massive, outrageous, pork-filled Congressional spending bill” and a “disgusting abomination.”

US Eyes Bitcoin Reserve to Tackle Soaring Debt

With the U.S. national debt now exceeding $37 trillion, lawmakers are floating bold new ideas to stabilize the country’s finances — and Bitcoin may soon play a central role.

Last year, Senator Cynthia Lummis introduced a proposal to establish a Bitcoin Strategic Reserve, positioning the cryptocurrency as a hedge against inflation and fiscal instability.

The bill, which gained fresh momentum after Donald Trump’s 2024 election victory, would direct the U.S. Treasury to gradually accumulate 1 million BTC — approximately 5% of Bitcoin’s total supply.

Modeled after the government’s gold reserves, the Bitcoin would be stored across a decentralized network of secure vaults, with purchases funded by existing Treasury assets.

Lummis argued that the Bitcoin reserve could help offset the declining value of the dollar and protect American families from the long-term effects of inflation.

“We must take bold steps to secure our economic future,” she said, calling Bitcoin a modern store of value.

Trump has previously pledged to make the U.S. the “crypto capital of the planet,” with Bitcoin now emerging as a potential pillar of national economic strategy.

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