Coinbase CEO Highlights Digital Asset Applications

Bitcoin serves as a reliable hedge against inflation and governmental manipulation, yet it has other applications as well. This was stated by Coinbase CEO Brian Armstrong in the company’s blog.

“Experts often claim that cryptocurrency has no real utility beyond speculation and illegal activities. However, more than 50 million Americans and 400 million people worldwide have purchased digital assets […], with illegal activities accounting for less than 0.5% of transaction volume. So what exactly are these people doing [with cryptocurrency]?” noted the head of the trading platform.

Since the early 1970s, many countries have severed the link between national currency and gold. Armstrong believes that in the US, a familiar pattern has been in place for 50 years: the government spends more than it earns because it can print money “for free.”

He added that 87% of Americans acknowledge the need to update the current financial system. This situation leads to the primary use case for cryptocurrencies—”a return to sound money.”

“Bitcoin is sound money with a fixed supply, and it is the solution to the [inflation] problem. If the invention of digital sound money were the only utility of cryptocurrencies, it would still be a world-changing technology, but it’s just the beginning,” said the Coinbase CEO.

He emphasized that the crypto industry has worked diligently to build the infrastructure for updating our financial system and empowering users. Armstrong highlighted several popular examples:

1. Fast and cheap cross-border payments. The annual transaction volume with US dollar-backed stablecoins approaches $9 trillion. Thanks to L2 networks, sending a “stable” coin can be done in a few seconds at the cost of a few cents.
2. Business for artists and creators. The total sales volume of NFTs has exceeded $62 billion, allowing artists in any field to have direct relationships with their fans, eliminating costly intermediaries.
3. Decentralized social networks. Such platforms ensure the protection of your personal data and the preservation of free speech rights.

“Cryptocurrency is not just a new asset class; it’s the future of money. Today’s system is clogged with intermediaries, high fees, delays, and other drawbacks that make it inaccessible and unfair,” concluded the top manager.

Earlier, Coinbase’s chief legal officer Paul Grewal criticized the US Government Accountability Office over a report on the use of cryptocurrencies for sanctions evasion. According to him, the agency conducted “zero comparative analysis to reproach an industry that spends millions and millions on compliance.”

Back in March, it was revealed that Coinbase plans to raise $1 billion through a private placement of convertible debt.