Coinbase CEO clashes with French central bank governor in Davos: Stablecoin yields and the "Bitcoin standard" become the focus.

During the World Economic Forum in Davos, Switzerland, Coinbase CEO Brian Armstrong and French Central Bank Governor François Villeroy de Galhau engaged in a heated debate on issues such as whether stablecoins should pay yields to holders and the monetary attributes of Bitcoin. The roundtable discussion, originally themed "Does Tokenization Represent the Future?", shifted its focus to stablecoin yield mechanisms, Bitcoin's positioning, and the legislative progress of the US Senate's CLARITY Act on the Structure of Crypto Markets. Armstrong stated that allowing stablecoins to offer yields to users would help improve consumer returns and international competitiveness, and pointed out that if regulated stablecoins in the US were prohibited from paying yields, it might actually benefit offshore products. Villeroy de Galhau, however, held an opposing view, arguing that private stablecoins with yield attributes could pose a systemic risk to the traditional banking system and financial stability, and explicitly stated that the digital euro should not use yields as a competitive tool; its core objective is to maintain the stability of the financial system. On the issue of US legislation, Armstrong emphasized that the CLARITY Act is not stalled, but rather in a stage of negotiation and bargaining. He explained that Coinbase's recent withdrawal of support was due to its opposition to banks lobbying to restrict competition in the crypto industry. Ripple CEO Brad Garlinghouse pointed out that the so-called "level playing field" should apply in both directions, with crypto companies and banks adhering to reciprocal regulatory standards. When the discussion turned to Bitcoin, Armstrong proposed the concept of a "Bitcoin standard," arguing that it could serve as a long-term alternative to combat fiat currency devaluation. Villeroy objected, emphasizing that monetary policy falls under national sovereignty and warning that private currencies could undermine sovereignty. Armstrong responded that Bitcoin does not have a single issuer, and its decentralization is even higher than that of the central bank system. Despite the significant differences, the participants generally agreed that future crypto innovation and regulation will need to find a path to coexistence through negotiation and compromise. (Coindesk)