Coinbase CEO Says Crypto Will Overtake Fiat Money As Risk Of A Financial Crisis Surges
Coinbase was recently in the spotlight when it’s been revealed that, together with Ripple, the two entities became the leaders of a new push for smart regulations that are fostering transparency and fairness in the crypto world, triggering mass adoption.
The company based in San Francisco and the crypto exchange are making increased efforts to help regulators understand their role in boosting the blockchain and crypto industry.
Fiat will be someday seen as “funny money”
Coinbase CEO Brian Armstrong said that the government currency is on track to be one day seen as funny money.
The US national debt is racing towards $31.4 trillion over the next ten years.
Armstrong cited a new study that’s published this week by the Congressional Budget Office (CBO), and he tweeted “consider crypto” to his 318,000 followers, as reported by the online publication the Daily Hodl.
The CBO report reveals that the US federal government debt will be boosted within ten years.
Crypto to become safer and sounder than the US dollar
Armstrong believes that this will turn out to be a massive blow to the financial system. The end result will also be the fact that crypto will be seen as more stable and sound compared to the US dollar.
“And crypto is seen as real money that people can’t tamper with (at least control is decentralized, and I can trust people to review the open-source code),” he said.
And crypto is seen as real money that people can't tamper with (at least control is decentralized and I can trust people to review the open source code).
Why put your livelihood into something that could be manipulated or devalued without your input.
— Brian Armstrong (@brian_armstrong) January 29, 2020
The CBO projection about the debt is mindblowing: $31.4 trillion debt is the highest level since the end of World War II.
“That debt path would dampen economic output over time. Rising interest costs associated with the debt would increase interest payments to foreign debt holders and thus reduce the income of U.S. households by increasing amounts,” the report explains.
The notes continue and highlight the fact that such an increase in federal borrowing will end up elevating the risk of a massive financial crisis.
Brian Armstrong is the co-founder and CEO of Coinbase, one of the largest crypto exchanges in the world (its reported Coinbase holds 966,230 Bitcoin ($7B) in Cold Wallet). Prior to his involvement with the blockchain and Coinbase, Armstrong worked at Deloitte and Touche as an Enterprise Risk Management Consultant.
Coinbase is a digital currency exchange headquartered in San Francisco, California.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.