Brian Armstrong Champions Stablecoins as Coinbase Embraces Centralized Payment Rails

On July 18, 2025, President Donald Trump signed the GENIUS Act into law, a landmark piece of legislation that establishes a regulatory framework for stablecoins, cryptocurrencies pegged to stable assets like the U.S. dollar. In a recent Fox News interview, Brian Armstrong, CEO of Coinbase, praised the bill for its consumer protection measures and its potential to revolutionize global financial transactions.

Armstrong emphasized the low cost and efficiency of stablecoins, which can process international payments for less than one cent in under a second, positioning them as a superior alternative to traditional financial systems. While this development marks a significant milestone for Coinbase and the broader crypto industry, it has reignited discussions about Bitcoin’s original promise as a low-cost payment solution and the shift toward stablecoins as the preferred medium for transactions.

From Bitcoin’s Vision to Stablecoin Dominance

In the early days of cryptocurrency, Bitcoin was celebrated for its ability to facilitate fast, low-cost global payments, often costing less than a penny and settling quickly. Before 2015, enthusiasts championed Bitcoin as a decentralized alternative to traditional banking, capable of sending value anywhere in the world without intermediaries.

However, as Bitcoin’s network faced scalability challenges and transaction fees rose to tens of dollars per transaction, its role as a practical payment method for payments such as a coffee, diminished. Armstrong’s recent comments highlight how stablecoins, backed by companies like Coinbase, have stepped in to fill this gap, offering the speed and affordability that Bitcoin once promised but with the added stability of being pegged to assets like the U.S. dollar.

Armstrong’s advocacy for stablecoins aligns with Coinbase’s strategic focus on integrating these digital currencies into mainstream finance. The GENIUS Act provides the regulatory clarity needed to boost consumer confidence, ensuring that stablecoin issuers adhere to strict standards to protect users from fraud. This framework enables Coinbase to promote stablecoins for everyday transactions, from cross-border remittances to online purchases, challenging the high fees charged by credit card networks. Armstrong’s vision positions stablecoins as a transformative force, capable of streamlining global commerce while maintaining the stability that volatile cryptocurrencies like Bitcoin lack.

Critics, however, argue that the rise of stablecoins, driven by centralized entities like Coinbase, strays from the decentralized ethos that defined Bitcoin’s early days. David Shares on X remarked that Bitcoin once offered instant, low-cost transactions, but centralized companies are now “shilling stablecoins to make money off of fees and loans,” effectively replicating traditional banking models.

Stablecoin issuers like Circle and Tether primarily generate revenue by investing fiat reserves, such as in U.S. Treasuries and cash equivalents, to earn interest, which accounts for the bulk of their income, while users receive no yield. Secondary revenue comes from fees for minting, redeeming, or processing transactions, and additional revenue is generated from lending reserves or loans into ventures like finance or data.

This tension around using stablecoins or Bitcoin shows a broader debate within the crypto community about whether stablecoins represent progress or a step backward from Bitcoin’s original goal of disrupting financial intermediaries. Despite these concerns, Armstrong remains steadfast in his belief that stablecoins are the future of payments, with Coinbase leading the charge to integrate them into the global economy.

The GENIUS Act’s passage solidifies Coinbase’s role as a key player in the evolving crypto landscape, with Armstrong at the helm advocating for stablecoins as a practical solution for modern financial needs. As Bitcoin’s use for everyday payments has waned, mainly due to its shifting from a medium of exchanhe to a store of value, “digital gold,” stablecoins have emerged as a reliable alternative, offering the efficiency and affordability that once defined Bitcoin’s appeal.

The legislation’s focus on consumer protection and regulatory oversight could pave the way for widespread adoption, positioning stablecoins as a cornerstone of digital finance. As Armstrong and Coinbase continue to champion this shift, the crypto industry stands at a crossroads, balancing innovation with the principles that sparked the blockchain revolution.