Brian Armstrong: Traditional Finance is Broken and Needs Crypto

Brian Armstrong, the CEO and co-founder of Coinbase, has recently doubled down on his critique of the legacy financial world, stating that “traditional finance is broken.” In various high-profile discussions and interviews throughout late 2025, Armstrong has pointed to systemic inefficiencies, high costs, and slow transaction speeds as proof that the centuries-old banking model is no longer fit for the modern digital age.

Armstrong’s argument isn’t just about criticism; it’s about a fundamental shift in how money should move. He highlights that while the internet has revolutionized information sharing, the “plumbing” of the financial system—specifically the SWIFT network and intermediary bank layers—remains sluggish and expensive.

The “Super App” Vision and Bank Replacement

To address these failings, Armstrong is steering Coinbase toward becoming more than just an exchange; he envisions it as a “bank replacement” or a financial “super app.” By leveraging blockchain technology, Armstrong aims to provide a primary financial account where spending, savings, and investing happen on-chain.

One of the primary “broken” elements Armstrong identifies is the high transaction fee structure of traditional networks. He often contrasts the 2-3% fees found in credit card networks with the efficiency of crypto rails, which can settle payments “in less than one second for less than one cent.” This efficiency, he argues, is the key to true financial inclusion, particularly in emerging markets where the legacy system is most fractured.

A Foundation Built on Regulatory Clarity

Armstrong’s bold statements come at a time of significant regulatory progress. With the passage of key legislation like the GENIUS Act and the Clarity Act in 2025, the CEO believes the industry finally has the “granite foundation” needed to build a new financial system. He notes that with the U.S. now leaning into a strategic Bitcoin reserve and established institutions integrating crypto, the “wall” between traditional and digital finance is rapidly crumbling.

The vision is clear: a transition from a world “running on credit” to one built on immutable digital capital. Armstrong remains optimistic that as blockchain scalability improves, the “utility phase” of crypto will replace the outdated legacy systems, eventually leading to an era where financial services operate at the speed of code rather than banking hours.