Coinbase’s Armstrong Says Bitcoin Could Safeguard Western Civilization Amid Economic Shifts

Key Takeaways

• Brian Armstrong proposed that Bitcoin could play a crucial role in safeguarding Western civilization.
• He envisions a future where Bitcoin acts as a “natural check and balance” to traditional currencies.
• In Latin America citizens are actively turning to cryptocurrencies as a means to protect their savings and assets.
• Crypto exchanges face regulatory scrutiny as the SEC pursues investor protections.

The financial landscape is undergoing a transformation with the rise of digital currencies, challenging the skepticism of some investors. Bitcoin, the foremost cryptocurrency globally, stands out as a compelling choice for those looking to hedge against inflation.

Brian Armstrong, the CEO of the U.S.-based cryptocurrency exchange Coinbase, expressed the view that Bitcoin could contribute to the extension of Western civilization.

Bitcoin As “Natural Check and Balance” for Fiat Currencies

According to Armstrong , Bitcoin serves as an alternative to fiat currencies like the U.S. dollar, providing people with an option to hedge against inflation.

In a recent post on X, Coinbase CEO pondered on the potential role of Bitcoin in shaping the future of Western civilization.

Armstrong believes that fiat currencies, including the U.S. dollar, are on a trajectory of continuous inflation, diminishing their advantages as viable currencies. He asserts that while the U.S. dollar is already on this path, there are currently no other alternatives, as other fiat currencies face similar challenges.

Armstrong also suggested that cryptocurrencies could serve as an alternative to traditional fiat currencies, even though many individuals may not currently be considering this option. He envisions a scenario where people shift from fiat currencies to cryptocurrencies as an “antidote to inflation.”

Contrary to some opinions, Armstrong doesn’t foresee Bitcoin causing the demise of the U.S. dollar. Instead, he envisions cryptocurrency evolving into a “natural check and balance” for the American currency, serving as a safeguard for the interests of the American people and the broader Western civilization over the long term.

In certain troubled countries in Latin America, such as Venezuela and Argentina, citizens are actively turning to cryptocurrencies as a means to combat inflation and devaluation resulting from weaknesses in their respective fiat currencies.

The distinctive applications of cryptocurrencies in these circumstances were underscored in Chainalysis’ 2023 Geography of Cryptocurrency Report , emphasizing the importance of dollar-pegged stablecoins in addressing these economic challenges.

Binance, Coinbase Challenge SEC’s Authority in Regulatory Showdown

The SEC and other U.S. regulators have initiated legal actions, urging American courts to apply federal investor protections to both Binance and Coinbase.

These companies are contesting the allegations in court, contending that the SEC lacks jurisdiction over their activities. However, the legal process is a gradual method of instigating change in the market, with the added uncertainty that the SEC might not prevail in court.

Although the SEC has achieved success in crypto litigation thus far, there is the acknowledgment that it faced setbacks, such as a federal judge dismissing part of its lawsuit against one of the major cryptocurrencies, XRP, in July.

Meanwhile, there is a split in Congress regarding how to address the issue, with Republicans advocating for customized regulations on crypto, while top Democrats are inclined to let the SEC and other regulators oversee the system.

Binance’s $4.3 Bn Settlement Signals a New Era for Crypto Regulation

Binance’s admission of guilt to money laundering and federal charges on November 21 marks a departure from its previous unregulated practices. In addition to acknowledging wrongdoing, Binance will pay a record-breaking $4.3 billion fine to the U.S. Treasury Department.

Furthermore, the founder, CEO, and principal owner of Binance, Changpeng “CZ” Zhao, considered one of the most influential figures in the crypto space, will be sidelined from the company for a minimum of three years under the oversight of a court-appointed monitor.

The agreement reached between Binance and the U.S. Department of Justice (DOJ), the Treasury Department, and the Commodity Futures Trading Commission (CFTC) is expected to have industry-wide repercussions—potentially, not exclusively negative.

Indeed, the deal is viewed as a “long-term positive” for the cryptocurrency and blockchain industry.

It holds significant importance for the sector, given that Binance, a stateless entity, is the world’s largest cryptocurrency exchange, having processed a substantial portion of all digital trades at times. Additionally, Zhao, who entered a separate plea deal, is widely recognized as a prominent figure in the industry, especially following the challenges faced by Sam Bankman-Fried of FTX.