Brian Armstrong said that the government’s uncontrolled issuance of money has created the need for a new financial system

Coinbase CEO calls bitcoin the solution to inflation

20.03.2024 - 10:00

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2 min

What’s new? US crypto exchange Coinbase CEO Brian Armstrong has said that cryptocurrencies are necessary to return to “sound money.” According to him, the uncontrolled issuance of money has led to increased economic inequality due to inflation and stagnation, creating the need for a new financial system. Armstrong explained that, like gold, bitcoin is not a national currency backed by a single government and has a fixed supply, which is a solution to the problems associated with inflation.

Coinbase blog

What else is known? Armstrong noted that “the average person may not understand the nuances of quantitative easing and federal budget deficits, but they do notice rising prices of gas, food, and education, and they increasingly have a sense that something is amiss in our economy.”

He emphasized that “in fact, 87% of Americans feel the current financial system needs an update. More than half of younger Americans use the system just sometimes or not at all.”

According to Armstrong, cryptocurrencies provide a much-needed digitization of the US dollar, a solution for fast and cheap global payments, a business model for creatives, and a possible solution to centralized social media problems such as censorship and data collection.

Coinbase’s revenue was $3,1 billion in 2023

Coinbase’s revenue was $3,1 billion in 2023

The exchange said it increased its total dollar holdings to $5,7 billion

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Earlier, Coinbase analysts reported that consumers could save at least $74 billion on bank card transaction fees in 2022 if they used blockchain technology.

Also in late February, the exchange unveiled new solutions for simplified user connection to crypto wallets, which eliminate the need for seed phrases and allow users to create a wallet using email or social media.

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