Brian Armstrong refuted the claims of opponents of cryptocurrencies that digital assets can only be used for speculation and illegal activities. He explained that more than 50 million Americans and 400 million people worldwide use cryptocurrencies, with illicit activity involving crypto assets accounting for less than 0.5% of the volume of these transactions.
Armstrong noted that many investors are attracted to cryptocurrencies precisely because of their distrust of traditional financial systems. He referred to the situation when the US “broke” the link between the dollar and gold in the early 1970s. According to Armstrong, for more than 50 years in the United States, the government has been spending more than it earns because it can print money in unlimited quantities, while the people have suffered decades of high inflation and economic stagnation. Bitcoin can solve this problem, because its supply is limited to 21 million coins, and gold reserves are also limited.
Armstrong also highlighted several key areas where cryptocurrencies are important. He noted the adoption of US dollar-backed stablecoins such as USDC, and also emphasized the importance of a digital dollar that can compete internationally with the digital yuan. The CEO of Coinbase called traditional payment methods ineffective due to high fees and slow bank transfers. While blockchain, especially layer 2 solutions, provide fast and cheap payments worldwide. At the same time, the annual volume of transactions with USDC is already approaching $9 trillion, Armstrong added.
The Coinbase executive also believes that non-fungible tokens (NFTs) improve communications between creatives and their fans, without the need for expensive intermediaries. Cryptocurrencies can also be used in decentralized social networks (DeSo), allowing people to own their data and protect themselves from censorship. Armstrong envisions a future in which social media posts can be verified to help prevent the spread of fake content created by artificial intelligence (AI).
In conclusion, Armstrong called cryptocurrencies a new asset class that represents the future of money. Therefore, he called on lawmakers to quickly develop a clear regulatory framework for crypto companies to strengthen the US position as a center for innovation.
Recently, Coinbase researchers conducted a survey and found that four out of five Californians are ready to vote for a presidential candidate loyal to cryptocurrencies.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
