The CEO of the US-listed crypto exchange Coinbase, Brian Armstrong, was invited to attend the White House's first crypto summit on Saturday (8th). In interviews with CNBC and Yahoo Finance on Saturday, he expressed an optimistic and positive stance on the changes in the US crypto regulatory environment this year, stating that President Trump has indeed "injected new vitality into the crypto industry" and had a positive impact in the US.
He announced that due to Trump's revival of the US crypto industry and the clarity of regulation, Coinbase plans to hire more than 1,000 employees in the US.
Coinbase CEO: Bit is the 'Gold Standard' Successor
Armstrong is also very optimistic about Trump's executive order to establish a Bit strategic reserve, which he believes will have a significant impact on the US and the world. The executive order signed by Trump last Friday shows that the US government is a holder of Bit, and will not sell the 200,000 Bit it holds through civil forfeiture and law enforcement actions, and will explore new ways to increase the Bit reserve in a budget-neutral (no additional cost to taxpayers) manner. Armstrong predicts:
Other G20 (Group of Twenty) countries will see this as a signal: to view Bit as the successor to the 'Gold Standard'.
Since the US is now on the offensive and in a leading position in the crypto field, I believe other countries, including the G20, will follow suit and start holding their own national strategic Bit reserves.
Armstrong seems to imply that the world may evolve from the past 'Gold Standard' to a future 'Bit Standard', meaning that Bit will attain a status similar to that of gold over national fiat currencies in the past, becoming an 'international settlement currency' with cross-border settlement capabilities.
Further Reading: Bombshell! Trump Signs Executive Order to 'Establish Bit Reserve' BTC Plunges to $85,000, Why Doesn't It Rise?
Long-term Bullish on Bit
When asked by the host why Bit prices faced selling pressure after Trump signed the executive order on the Bit strategic reserve, announcing that he would hold on to the $17 billion worth of Bit,
Armstrong replied that the US government's plan to purchase new Bit in a budget (tax revenue) neutral manner is a "big deal", and that regardless of what happens in the short term, he believes Bit prices will continue to rise in the long run.
He also said he disagrees with those who are disappointed that the US government is purchasing Bit in a tax-neutral manner, as he believes the government's approach is wise, otherwise it would raise questions about the source of the Bit reserve. "I think they're just emphasizing that this is a neutral process, it's Bit-centric, it will be fair and orderly, and it won't cost American taxpayers anything."
Will Coinbase Become the US Bit Reserve's Preferred Custodian?
Regarding whether Coinbase could potentially compete to become the custodian of the US Bit strategic reserve, Armstrong said he believes the US government should establish a fair and transparent process for companies to bid, and that Coinbase, which has long provided crypto custody and trading services to US government agencies, hopes to participate as well.
The Coinbase CEO, who took a pro-Trump stance in the US election, expressed optimism in the Q4 earnings call in February that Trump's return to the White House would fulfill his promise to make the US a global crypto hub, and that the US currently has the "most crypto-supportive Congress in history", pushing for stablecoin and market structure-related legislation that will inevitably impact global regulation.
"By 2030, up to 10% of global GDP could be running on crypto." He described the current corporate focus on crypto as similar to how companies adapted to the internet revolution in the early 2000s. And he emphasized:
Onchain is the new Online.
