The fourth day of the World Economic Forum, held in Davos, Switzerland, has begun.
Many prominent figures attended Davos, and the cryptocurrency sector also had a presence.
At this point, Brian Armstrong, the CEO of Coinbase and a key figure in the cryptocurrency sector, was also among those attending Davos.
Coinbase CEO Brian Armstrong faced off against French Central Bank President François Villeroy de Galhau at a panel titled “Tokenization: The Currency of the Future?”.
The CEO of Coinbase and the Governor of the Bank of France have clashed over stablecoin interest payments and Bitcoin (BTC).
According to Coindesk, while the Coinbase CEO defended interest-bearing stablecoins and the strong role of Bitcoin, the head of the French Central Bank strongly opposed this view, citing financial stability and monetary sovereignty.
At this point, Armstrong argued that users have a right to earn a return on their money and that allowing stablecoin interest is necessary for national competitiveness.
Armstrong noted that China already allows interest payments for its digital yuan, a central bank digital currency (CBDC), and stressed that a US ban on such payments would allow competitors to develop.
In contrast, Villeroy de Galhau argued that interest-paying private tokens would pose a risk to the traditional banking system.
Galhau stated that he believes the digital euro should not have to pay interest, adding that the primary public objective should be to maintain financial stability.
The pair also held differing views on Bitcoin. Armstrong emphasized that Bitcoin is a decentralized protocol, more independent from central banks.
The Coinbase CEO also added that Bitcoin, unlike fiat currencies which are under the control of central banks and government policies, does not have a private issuer. Armstrong also described the competition between fiat and cryptocurrencies as healthy because it leaves the choice in the hands of individuals.
Villeroy de Galhau, on the other hand, underlined the role of central banks, stating that “currency and monetary policy are part of democratic sovereignty.”
Villeroy concluded by arguing that unregulated stablecoins and private currencies could become a political threat and potentially lead to a loss of national monetary sovereignty.
*This is not investment advice.
