Coinbase (COIN) CEO Brian Armstrong has backed plans for countries to create Bitcoin strategic reserves.
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Growing excitement over plans by incoming president Trump to create a U.S. strategic reserve of Bitcoin has pushed it to a record high above $109,000 in volatile trading on Monday, January 20th ahead of his inauguration.
The U.S. has seized over 215,000 Bitcoin since 2020, worth roughly $22.5 billion, which Trump wants to store for the government. There is also a bill sponsored by Republican senator Cynthia Lummis that proposes the purchase of 200,000 Bitcoin a year for five years.
Bitcoin Means “Economic Freedom”
In a wide-ranging post on economic freedom, capitalism and Marxism, Armstrong set out his vision for embracing crypto.
He said it’s time for world leaders to embrace crypto and “techno-optimism” in order to accelerate economic freedom and human progress.
Firstly, he said governments ought to pass laws to ensure crypto thrives onshore. “Crypto is a new, unique technology that should not be governed by antiquated laws,” he wrote, arguing that policymakers should focus on developing “clear, forward-looking regulatory frameworks that cultivate this innovation rather than pushing it offshore.”
Second, he backed countries establishing a Bitcoin strategic reserve, calling it inevitable that governments will scramble to do so amid a “global arms race” in the digital economy.
Armstrong added: “Bitcoin could be as foundational to the global economy as gold and will become central to national security.”
He also called on governments around the globe to be more efficient with their use of resources, and to create special economic zones to support experimentation and innovation.
Is COIN a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on COIN, based on nine Buys, 10 Holds and one Sell. The average COIN price target of $293.83 is only half a percent below the current level. Shares in COIN have risen by 130% in the last 12 months.
