Coinbase CEO Warns US Debt May Elevate Bitcoin Reserve Status

A new proposal within the Polkadot community aims to create a Bitcoin Strategic Reserve by allocating DOT tokens to purchase tBTC over a year, promoting diversification and cross-chain liquidity. Concurrently, Coinbase CEO Brian Armstrong has highlighted the risk of the U.S. dollar losing its global reserve currency status due to escalating fiscal deficits and a ballooning national debt, which could pave the way for Bitcoin to assume that role as a decentralized and inflation-resistant alternative. Armstrong stressed the importance of fiscal discipline and warned that without corrective measures, Bitcoin's fixed supply might make it the inevitable reserve currency, especially given the limitations of alternatives like the Chinese yuan. At the same time, President Trump announced the establishment of a U.S. Strategic Bitcoin Reserve as part of his administration's broader crypto regulatory framework, including efforts to advance stablecoin legislation through the GENIUS Act. This initiative signals a shift in U.S. policy toward embracing digital assets, aiming to strengthen America's position in the global cryptocurrency landscape. Together, these developments reflect growing institutional and governmental recognition of Bitcoin's strategic and financial significance amid economic uncertainties.