Coinbase CEO: Cryptocurrencies can unlock the next chapter of capitalism

Author: Brian Armstrong, Coinbase CEO; Compiler: 0xjs@金财经

In the United States, people voted for more economic freedom and free markets when they elected Donald Trump in 2024. Canada appears to be on a similar path to Pierre Poilievre. Argentinian President Milai and Latin American President Bukele of El Salvador led the movement in 2023. In the UK, Starmer is shifting to a pro-tech and innovation agenda to try to appeal to more voters, while in Germany, Schulz is likely to be voted out soon as poor fiscal policy slows the economy.

We are at a critical moment in history: the world is waking up to the dangers of big government, seeing that it harms the very people it claims to protect the most, and that it never works in practice. However, some people are still heading in the wrong direction. China emerged under Deng Xiaoping's free- market policies.

Economic growth resulted from free market capitalism, deregulation, small government, and technological innovation. Economic growth brings lower prices, more jobs, more taxes, better health care, and more. The best way to lift people out of poverty and create prosperity for all is not socialism but free market capitalism. If other G20 countries want to participate in economic prosperity, they would be wise to join the growing trend to embrace economic freedom and free markets.

At Coinbase, our mission has always been to increase economic freedom in the world. Like freedom of speech or freedom of religion, economic freedom is essential to a prosperous society and the progress of civilization. We believe that cryptocurrency is the most important technology capable of bringing economic freedom to the world.

Everyone around the world cares about and deserves economic freedom. According to our survey, more than three-quarters of adults around the world say they want more economic freedom. This is not surprising, as economic freedom has been shown to increase happiness, increase literacy rates, improve the environment, and many other positive social indicators (reported by sources from the World Bank, Pew Research Center, and World Economic Forum).

However, economic freedom is declining and the world economy is mostly

unfree.

We were on the right track for the past 100 years, with economic freedom rising, but things took a sharp turn for the worse in the early 2000s. The average global economic freedom score is now at its lowest level since 2001. The result: people around the world in most economies are largely considered unfree and even repressed.

In the United States, this means that living standards are declining and most people feel that the American Dream is unattainable. Only 14% of Americans are optimistic about the future of the financial system. Around the world, 70% of adults now say their children will be worse off financially than their parents. The loss of economic freedom causes people to lose faith in the system.

What are the reasons for the recent rise of socialism? Why does this experiment keep being tried? There seems to be something in human nature that gravitates toward socialism, and every generation needs to learn its lessons the hard way. For some, this approach is motivated by a sincere desire to help others, without realizing that these policies harm the very people they claim to help. For others, they exploit ignorant people to gain power, or the practice stems from a deeper hatred of themselves or humanity.

Whatever the reason, history teaches us that whenever we face a challenge, we as a species can invent creative solutions. From the printing press to the steam engine, from electricity to the Internet—each breakthrough has revitalized economies, empowered people, and advanced civilization. Cryptocurrency is the next chapter in this story.

Cryptocurrencies could usher in capitalism’s next chapter: an era of

economic freedom

Coinbase’s core thesis is that widespread adoption and use of crypto will increase economic freedom. This is based on the promise of crypto to create a global economy, driven by technology and people rather than governments, where anyone with an internet connection can participate, property rights are enforced, and currency maintains its value. This is not a dream. Crypto is already creating more economic freedom for real people today:

1. Stable currency: Stable currency is expected to become the next killer application of cryptocurrency, with transaction volume increasing more than three times year-on-year to approximately US$27 trillion. Stablecoins are becoming part of people’s daily financial lives, not just transactions, especially in emerging markets, leading the world in stablecoin adoption. Five million Argentines actively use cryptocurrencies for daily transactions and to save dollars, the second most popular emerging market use case.

2. Free trade: Cryptocurrencies operate on a global network without the restrictions of middlemen and national borders, thus promoting free trade. L2 can now complete global transactions in 1 second for less than 1 cent, making cryptocurrency the only payment method that meets all 3 criteria: fast, cheap, and global. This brings unprecedented freedom of trade to individuals and businesses. Simply Sending Cryptocurrency is instant, cheap, and has no imposed restrictions – unlike traditional services which are often regionalized and/or have limits on transaction frequency and amounts. Just ask people why they use cryptocurrencies. A Visa study found that one of the top reasons people use cryptocurrencies in Australia, Brazil, Germany, Hong Kong, South Africa, the United States, and the United Kingdom is transaction freedom and lower fees.

3. Property Rights: Cryptocurrencies enable secure and enforceable property rights by replacing courts or middlemen with code and cryptographic security. Governments are turning to cryptocurrencies to address the >5 billion people around the world who lack proof of home/land ownership. On the blockchain, ownership is immutable and smart contracts can be used to automate and enforce the rights that come with ownership. For example, Georgia is putting land records on the blockchain and Sweden is testing an encryption system for land registration.

4. Permissionless access: Cryptocurrencies are removing borders to create a more inclusive global financial system where people can both keep more of their hard-earned money and do more with it. Decentralized finance (DeFi) is revolutionizing access to financial services, giving anyone with an internet connection—from rural entrepreneurs to the 1.4 billion unbanked—equal opportunities to participate in the global economy.

Cryptocurrency adoption and usage has reached escape velocity. Almost 7% of the world now owns cryptocurrency because people are turning to it to solve real problems:

How to increase economic freedom in 2025

World leaders and policymakers: Now is the time to embrace crypto+tech optimism to accelerate economic freedom and human progress. Here are four practical things you can do this year:

1. Pass laws to ensure cryptocurrencies thrive onshore. Cryptocurrency is a new and unique technology that should not be subject to outdated laws. Policymakers should focus on developing a clear, forward-looking regulatory framework to nurture this innovation, rather than pushing it offshore – otherwise they risk falling behind.

2. Establish a Bitcoin strategic reserve. It has been the best-performing asset class since its inception and has cemented its position as an inflation hedge. The next global arms race will be in the digital economy, not space. Bitcoin could become as fundamental to the global economy as gold and would become central to national security, as Bitcoin holdings can alter the balance of power between nations. Governments of various countries will compete to establish strategic Bitcoin reserves to protect and enhance their national economies, and countries without Bitcoin reserves will lose their foothold in the digital age.

3. Support special economic zones so that builders can freely try out all kinds of big ideas. You can use a sandbox to safely experiment and innovate, allowing builders to learn by doing. We've seen this approach historically work to good effect in cities like Shenzhen and Hong Kong, and new projects including Prospera have the potential to accelerate innovation by embracing cryptography.

4. Improve government efficiency. Similar to what Milei and DOGE did, we re-recognized that excessive big government does not effectively solve problems, but that often the problem itself is the problem. No matter who you are or where you are, cryptocurrencies are for you. Even if you don’t own or use cryptocurrency-powered financial services, you will still benefit. Cryptocurrencies act as a counterweight to heavy-handed governments, over- regulation, legal battles, rising deficits and limited innovation.

Everyone: We should all demand and build a path forward that makes builders, innovation, and free markets (not government) the drivers of economic growth. We must embrace economic freedom. The progress of civilization depends on it.