Home Coinbase CEO: Bitcoin could counteract US deficit

Coinbase CEO: Bitcoin could counteract US deficit


  • Coinbase CEO Brian Armstrong advocates for Bitcoin as a fiscal discipline tool amidst rising U.S. deficit spending.
  • Robert Sterling, CFO of 20 Dollar Consulting, highlights the alarming trend of increasing national debt, attributing it to bipartisan fiscal policies.
  • Armstrong sees Bitcoin as a modern-day gold standard, offering a disciplined alternative to deficit spending and urging a reevaluation of fiscal policy.

Coinbase CEO Brian Armstrong has advocated for Bitcoin (BTC) as a financial discipline tool, suggesting it could counteract United States deficit spending and echo the fiscal restraint of the gold standard era.

Robert Sterling, CFO of 20 Dollar Consulting, explained that the United Sates national debt is a symptom of fiscal  expansion. The trend took hold and started accelerating during the Gerge W. Bush administration and never subsided away since then.

Furthermore, the situation was further exacerbated as a consequence of military spending, tax cuts, the Great Recession and the recent COVID-19 pandemic. Armstrong commented on this trend by advocating for Bitcoin as a possible solution.


Bitcoin: the new gold standard?

The Coinbase CEO suggested the Bitcoin is a return to how the financial landscape looked up to when in 1971 the Nixon administration abolished the gold standard — one of the causes of the so-called Nixon shock. According to Armstrong, the inability of financial institutions to issue more Bitcoin according to their wishes constitutes “a return to financial discipline.”

The Coinbase CEO believes that Bitcoin could serve as a counterbalance to what he perceives as excessive deficit spending of the United States administration. He also claims that Bitcoin could keep the United States dollar strong.

Still, Armstrong did not explain how Bitcoin would strengthen the dollar or act as a counterbalance to United States’ deficit spending. Eric Voorhees — CEO of instant crypto exchange ShapeShift — voiced his confusion concerning how Bitcoin would achieve anything that was suggested by the Coinbase executive.

Voorhees has gone as far as to suggest that in the long-term Bitcoin could end up keeping public spending in check. Still, he suggested that this could only happen after fiat currency become a thing of the past. This is in stark contrast with the Coinbase CEO’s suggestion that it could instead strengthen the United States dollar.

The debate follows recent reports that El Salvador — the world’s first country to adopt Bitcoin as legal tender — has seen $84 million in gains from its Bitcoin holdings. The country is also working to launch its “Volcano Bonds” backed by Bitcoin.

Featured Image: Ideogram

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Radek Zielinski
Tech Journalist

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.