Coinbase CEO sees crypto payments as next big growth area

Brian Armstrong, CEO of Coinbase, recently shared his thoughts on the evolution of the cryptocurrency industry, reflecting on how his early expectations for crypto payments did not materialise as anticipated.

Instead, trading emerged as the dominant application in the first decade of crypto’s development.

Armstrong initially believed that payments would be the primary use case for cryptocurrencies, but the rise of trading platforms like Coinbase demonstrated that trading was the more immediate and profitable application.

Reflecting on this, Armstrong remarked, "It’s funny to look back on how I thought payments was going to be the first killer app for crypto, and it turned out trading was the best business in crypto for the first 10 years."

Looking ahead, Armstrong remains optimistic about the potential for crypto payments to gain prominence in the coming decade.

He pointed to advancements in stablecoins, layer two technologies, and improved onboarding processes as key developments that could drive this growth.

"I think payments will probably take off in the second 10 years," Armstrong stated, indicating that the foundation for widespread crypto payment adoption is already being laid.

The Coinbase CEO highlighted that the infrastructure supporting crypto payments is steadily improving, citing the increasing volume of stablecoin transactions as evidence of this trend.

He noted that with tools like stablecoins, layer two solutions (like Base), human-readable names (ENS), and simpler onboarding through Smart Wallets, the industry is poised for significant growth in the payments sector.

Armstrong also emphasised the importance of learning from the past and adapting to customer needs, stating that the crypto industry’s evolution is a testament to the value of taking action and iterating based on feedback.

He described this process as a “good example of bias for action and iterating based on customer feedback,” highlighting how active engagement in the market produces valuable information and drives progress.

As the cryptocurrency industry continues to evolve, Armstrong’s insights suggest that the next decade could see payments finally take center stage, fulfilling the early promise that many, including Armstrong, initially envisioned.