- Coinbase CEO Brian Armstrong makes a bold claim, saying Bitcoin will become the next reserve currency in the global economy.
- The rising US Debt is expected to cause a decline in the US Dollar.
- A decline in the value of the US Dollar could catalyze de-dollarization.
- Countries that have already started establishing Bitcoin reserves are the US, China, the UK, and El Salvador.
Coinbase CEO Makes Bold Claim
Coinbase CEO Brian Armstrong has made a bold claim that Bitcoin would eventually replace the US Dollar and become the principal reserve currency in the global economy. He added that this is due to increasing US debt (at $40 trillion at press time).
Since most of the debt is in US dollars, it forces the Federal Reserve to print even more dollars to repay old debt and monetize the government revenue deficit. As a result, more dollars enter the economy, increasing inflation in that currency (USD) and diminishing its value over time.
Why is the US Dollar Losing Value?
The US Dollar has been losing value since its creation in 1792 under the US Coinage Act, due to rising inflation. Slow inflation, even at a low rate of 2-3%, has gradually eroded its value over time.
Further, since 1975, when the Reagan administration decoupled the dollar from gold and ended the gold standard, there has been no reason to prevent the government from printing excessive dollars to support government spending. Over the last 50 years, this has resulted in a parabolic increase, so much so that in the last couple of years, the US Debt (which is the amount of dollars the government prints through the Federal Reserve) has increased by more than $1 trillion a year.
Excessive dollar printing has caused two issues:
- It increased the supply of US dollars in the economy, diminishing its value over time.
- It has resulted in increased government debt, which also increases interest payments, forcing the government to pay more interest and further increasing the printing of new dollars.
Together, these factors have increased the rate of new dollars by $1.65 trillion in 2025.
Countries with Significant Bitcoin Reserves
I have obtained the above information from Arkham Intelligence to show the latest figures on how many countries have already established Bitcoin Reserves. Some of them are strategic, like El Salvador and Bhutan, while others are confiscated assets like the UK.
- The US holds the largest Bitcoin Reserve at 328,000 BTC, established by confiscations from criminals.
- China holds the second-largest reserve at 200,000 BTC, also established by confiscations.
- The United Kingdom holds the third-largest reserve at 61,000 BTC, also established through confiscations.
- Ukraine holds the fourth-largest reserve with assets obtained through donations. It has 46,000 BTC.
- El Salvador holds the 6th-largest reserve at 7,750 BTC and is the only reserve that is growing with new accumulations via strategic buying.
Bhutan held more than 6000 BTC, all obtained via mining, but has sold the reserves to fund public welfare projects.
Germany once held more than 50,000 BTC but sold it all in 2024 for $3.1 billion.
Disclaimer: Bitcoin News aims to provide information only, and our information does not constitute trade or investment advice. Kindly consult a financial advisor before trading or investing.
