Coinbase CEO Brian Armstrong has reacted to a recent report on the United States’ escalating national debt by recommending crypto assets.
A recent report on US national debt has painted a gloomy picture for the future. It currently stands at over $23 trillion with the Trump administration generously adding to that figure with vigor. Crypto could be the solution.
The CEO of the country’s largest crypto exchange, Coinbase, has recommended crypto as a solution to these escalating economic woes.
He added that most people today still see crypto as ‘funny money’ or a speculative asset class but things will change in the future.
“I believe we’re going to see this perspective flip, probably starting with young people as with many things, where holding a government’s currency is seen as funny money.”
"U.S. National Debt Will Rise to 98% of GDP by 2030, CBO Projects" https://t.co/PNniOjpZUV
— Brian Armstrong (@brian_armstrong) January 29, 2020
The WSJ report warns that national debt and sustained federal budget deficits will hit the highest levels since World War II over the next decade.
It added that debt held by the public is projected to be 81% of GDP this year and to reach 98% by 2030 when it has topped $30 trillion according to this tracker.
Armstrong asked the question; “Why put your livelihood into something that could be manipulated or devalued without your input?”
The Federal Reserve, America’s central bank, has been printing dollars and injecting them back into the financial system since September 2019.
This has all been part of repurchase agreements which is essentially bailing out the debts commercial banks allowing them to lend more. Economists call it quantitative easing.
Similar central bank currency manipulation and devaluation is occurring in many major economies as the prospect of another financial crisis looms.
Crypto does fix this being immutable, decentralized, inflation-proof and finite.
More custody options
In its efforts to lure more institutional investors, Coinbase has expanded its crypto custody operations to help US clients store their digital assets.
According to CNBC, the firm announced that it would open Coinbase Custody International, a new entity based in Dublin, Ireland.
Europe is currently Coinbase Custody’s biggest geographic segment of growth, but the US could be more lucrative.
CEO of Coinbase Custody, Sam McIngvale, added that they looking to go global; “We think we can service most of Asia and other international markets out of Custody International.”
According to the report Coinbase currently has over $7 billion worth of crypto assets under custody, with European and international holdings at just under $1 billion.
Global banks and US regulators are still procrastinating with their approach to digital assets but they surely cannot still be in denial that they are here to stay.
With galloping national debts and dark economic clouds, younger tech-savvy generations will be turning to crypto quicker than ever especially as its safe haven status strengthens.