Armstrong commented that his experience in Argentina allowed him to understand the effects of inflation.
The businessman applauded Bitcoin’s advance and cryptocurrencies in the institutional environment.
The founder and CEO of Coinbase, Brian Armstrong, said that the G20 governments have begun to consider Bitcoin (BTC) as a strategic asset, in line with the decision of President Donald Trump to establish a reserve backed by the creation of Satoshi Nakamoto.
During an interview in the podcast Shawn Ryan ShowArmstrong described as “historical” the executive order signed by the president, who authorizes the creation of A reserve composed of BTC confiscated by the United States government.
«This would have been unthinkable five years ago. At that time, the government was extremely skeptical. Today, the United States officially recognizes Bitcoin as a strategic asset that must be preserved », affirmed.
According to Armstrong, the creation of this treasury not only legitimizes Bitcoin within the United States, but also globally: “Now that the country has taken this step, the members of the G20 and the central banks are beginning to look at this with other eyes.”
According to data Arkham Intelligence, the US government has 198,022 BTC, although so far an official audit has not been carried out in this regard. As Cryptonoticia published, The Trump administration is expected to clarify this point in an upcoming reportwhere he will also present the strategy to supply his Bitcoin strategic reserve.
The executive order signed by Trump, in addition to prohibiting the sale of the Bitcoin seized, authorizes the secretaries of the Treasury and Commerce to develop mechanisms to acquire new BTC without generating additional costs for taxpayers.
«Many people do not know, but the United States maintains strategic reservations of various assets. Gold is probably the best known, but also has oil, paladium reserves and several rare minerals. We believe that Bitcoin is another strategic asset that should be in custody of the US government », said The businessman.
Asked about pricing volatility, one of the most frequent criticisms of the sector, Armstrong explained that Bitcoin is becoming progressively less volatile as its adoption expands:
«Ten years ago it was much more unstable, but with more people and institutional capital involved, these extreme fluctuations have begun to soften. As we reach 2,000 or even 5,000 million users in the world, we will see less sudden movements, although the value will continue to grow over time ».
Thus, he said that Many people choose to use BTC as a value reservewhile for daily transactions they prefer more stable digital assets, such as USD Coin (USDC).
“If you are going to reinvent the financial system, you need a digital gold, a digital dollar, digital actions … Crypt is remakeing all those pieces and making them faster, economic, global and efficient,” he synthesized.
Armstrong, whose company, Coinbase, is one of the main criptomonets of the world and is part of the S&P 500 index, celebrated this institutional turn as a maturity signal for the ecosystem. He also stressed that only 9% of Americans feel satisfied with the current financial system, while 38% of young people believe that cryptoactives can expand economic opportunities.
The specialist shared a personal experience that shaped his vision of digital currencies: His stay in Argentina, where he witnessed the devastating effects of hyperinflation on culture and economy. “In Argentina, the currency has been devalued so many times that people spend their salary immediately, because tomorrow could be worth less.”
“This destroys optimism about the future and deeply affects society,” said Armstrong, who also linked this experience with Bitcoin’s relevance and added to the list of countries with unstable currencies to Venezuela and Turkey.
“Bitcoin offers a decentralized monetary system that cannot be manipulated by governments, which is crucial for people living in high inflation environments,” he concluded.
During the interview, Armstrong also addressed issues such as cybersecurity and emerging risks facing cryptocurrencies. In particular, he highlighted Coinbase’s efforts to protect the funds of users in the face of threats such as advances in quantum computing, which could compromise current cryptographic standards.
«We are investing in research and adopting post-chantic standards promoted by organisms such as NIST. We want to make sure that if these technologies arrive earlier than expected, the ecosystem is prepared, ”he explained.
