BlockBeats News, January 22: During the World Economic Forum held in Davos, Switzerland, Coinbase CEO Brian Armstrong and Governor of the Bank of France François Villeroy de Galhau engaged in a fierce debate on whether stablecoins should pay interest to holders and the monetary properties of Bitcoin.
Armstrong stated that allowing stablecoins to provide yield to users helps increase consumer returns and international competitiveness, and he pointed out that if regulated US stablecoins are prohibited from paying interest, it may actually benefit offshore products. Villeroy de Galhau took the opposite stance, believing that private stablecoins with yield-generating properties could pose a systemic risk to the traditional banking system and financial stability, and he explicitly stated that the digital euro should not use yield as a competitive tool, as its core objective is to maintain financial system stability.
Regarding US legislative issues, Armstrong emphasized that the CLARITY Act is not stalled but is in a negotiation stage, and explained that Coinbase recently withdrew support to oppose the banking industry’s lobbying efforts to restrict competition in the crypto industry. Ripple CEO Brad Garlinghouse pointed out that the so-called “fair competitive environment” should apply bilaterally, with both crypto companies and banks adhering to equal regulatory standards.
When discussing Bitcoin, Armstrong proposed the concept of the “Bitcoin Standard,” believing it could serve as a long-term hedge against fiat devaluation. Villeroy opposed this, emphasizing that monetary policy falls under national sovereignty and warning about the potential erosion of sovereignty by private money. Armstrong responded by stating that Bitcoin has no single issuer and its decentralization is even greater than that of the central bank system. (Coindesk)
