Coinbase CEO Clashes with French Central Bank Governor at Davos: Stablecoin Yields and "Bitcoin Standard" Take Center Stage

On January 22, at the World Economic Forum in Davos, Switzerland, Coinbase CEO Brian Armstrong and Bank of France Governor François Villeroy de Galhau engaged in a heated debate over two key topics: whether stablecoins should pay interest to holders, and the monetary properties of Bitcoin. Armstrong argued that allowing stablecoins to offer yield to users would boost consumer returns and enhance international competitiveness. He noted that if regulated U.S. stablecoins are barred from paying interest, it could ultimately benefit offshore crypto products. Regarding U.S. legislation, Armstrong stressed the CLARITY Act is not stalled but currently in negotiation. He explained Coinbase recently withdrew support to push back against the banking industry’s lobbying efforts that seek to restrict competition in the crypto sector. On Bitcoin, Armstrong put forward the “Bitcoin Standard” concept, asserting it could serve as a long-term hedge against fiat currency devaluation. He countered Villeroy’s concerns by stating Bitcoin has no single issuer and its decentralization is more extensive than that of central bank systems. Villeroy took the opposing view: he argued yield-generating private stablecoins could pose systemic risks to the traditional banking system and financial stability. He explicitly stated the digital euro should not use yield as a competitive tool, as its core goal is to maintain financial system stability. Regarding monetary sovereignty, Villeroy emphasized monetary policy falls under national authority and warned private money could erode that sovereignty. Ripple CEO Brad Garlinghouse pointed out the so-called “fair competitive environment” should apply bilaterally—both crypto firms and banks must adhere to equal regulatory standards. (Source: Coindesk)