Coinbase CEO: Stablecoins are the best form of money so far
Coinbase CEO Brian Armstrong stated on social media, "We are extremely bullish on the growth of stablecoins, Stablecoins are the best form of money, and most people would benefit more by switching to stablecoins," emphasizing that stablecoins outperform traditional bank accounts and cash systems in terms of settlement speed, costs, and universality. He has repeatedly pointed out in various interviews and policy advocacy that compliant USD stablecoins combine the price stability of fiat currency with the programmability and cross-border instant settlement capabilities of blockchain, serving as the foundational layer for future payments and value storage. Coinbase is also positioning USDC and stablecoin yield products as one of the core growth engines of the company.
Source: Public Information
ABAB AI Insight
Armstrong refers to stablecoins as the "best form of money," which is backed by a clear functional comparison: from an economic perspective, money needs to fulfill three main functions: unit of account, medium of exchange, and store of value. Fiat currencies like the USD face significant frictions in inflation and cross-border transfers, while volatile assets like Bitcoin are unstable for accounting and short-term storage. Stablecoins backed by USD reserves attempt to achieve a "good enough" balance across these three dimensions. They can be priced in USD, maintain short-term stability, and enable near real-time, low-cost cross-border transfers and programmable payments on-chain, which Armstrong sees as the "pragmatic optimal solution" under current technological conditions.
From a business structure perspective, Coinbase has already positioned stablecoins as one of the core components of its future cash flow and moat: USDC serves as on-chain USD infrastructure, generating fees and enterprise service revenue through trading, custody, and cross-chain bridges, while also earning interest from holding reserve assets (mainly short-duration US Treasuries and cash equivalents). This revenue is partially returned to users and partners through yield sharing, reward programs, and B2B integrations. This evolution transforms Coinbase from a mere "matching exchange" into an "on-chain USD infrastructure operator." The more widely stablecoins are used, the stronger its bargaining power in interest spreads and payment networks, which is one of Armstrong's fundamental motivations for actively promoting stablecoin legislation and interest compliance space at the policy level.
On an institutional level, the statement "stablecoins are the best form of money" also implicitly declares war on the traditional banking system. Stablecoins replace some banking functions with software and transparent reserves: cross-border remittances, electronic payments, foreign currency holdings, and even some short-term savings, without the need for physical branches, interbank clearing, and complex compliance processes. This could lead to a portion of "demand deposits" migrating from the banking system to on-chain USD, compressing banks' sources of cheap funding, and prompting regulators to attempt to impose limits on stablecoins through interest bans and position limits. Armstrong emphasizes the "best form of money" while also sending a signal to legislators: if US regulators are unwilling to accept and shape this form institutionally, global users will complete this migration in other jurisdictions, and the US financial system will lose its initiative.