Coinbase CEO Says Bitcoin Is Digital Gold as Stablecoins Dominate Payments

Bitcoin (BTC) is trading around $64,523, roughly 45% below its October 2025 all-time high of $126,080, while the stablecoin market continues to expand toward record levels. According to Coinbase CEO Brian Armstrong, this trend reflects Bitcoin’s evolution into a store of value rather than the digital payment system originally envisioned by its creator.

Speaking on the People by WTF podcast with Zerodha co-founder Nikhil Kamath, Armstrong acknowledged that Bitcoin has successfully established itself as "digital gold" but has fallen short of becoming a widely used medium of exchange.

Armstrong said Bitcoin’s primary role today is preserving value, not facilitating everyday payments. Although solutions like the Lightning Network were introduced to improve transaction speed and reduce costs, he noted that they failed to gain widespread adoption.

He explained that Bitcoin’s fixed supply encourages investors to hold the asset instead of spending it. Since many believe BTC will become more valuable over time, they prefer to keep it as a long-term investment. Price volatility has also limited its use for routine transactions.

As Bitcoin settled into the role of a store of value, stablecoins emerged as the preferred blockchain-based payment solution. Armstrong said fiat-backed stablecoins now fulfill the function that Bitcoin was originally expected to perform, offering price stability and faster transactions while operating on blockchain networks.

Data from DefiLlama shows the total stablecoin market capitalization approaching $310 billion. Tether’s USDT remains the largest stablecoin with approximately $184 billion in circulation, while Circle’s USDC accounts for around $73 billion.

Armstrong also pointed to the GENIUS Act, signed into law in July 2025, as a key factor supporting stablecoin adoption in the United States. The legislation provided a clearer regulatory framework, helping increase trust and encouraging broader use of dollar-backed digital assets. He noted that much of this payment activity now takes place on blockchain networks such as Base and Solana.

Despite Bitcoin’s shift away from everyday payments, Armstrong does not see it as a failure. Instead, he believes the cryptocurrency has matured into its most valuable role—as a decentralized, scarce digital asset comparable to gold, while stablecoins handle the growing demand for blockchain-based payments.