From the Gold Standard to Bitcoin: How Coinbase CEO and the Head of the Bank of France See the Future of Crypto Assets

At one of the international forums, a heated debate erupted between Brian Armstrong from Coinbase and François Villeroy de Galhau from the Bank of France. Their clash of views revealed fundamental disagreements over the regulation of crypto assets and the role of decentralized finance in the global economy. The central point of contention is not just technology, but the future architecture of the world financial system, in which the gold standard once served as an anchor of stability.

The Debate Over Stablecoin Yields: Security or Competitiveness?

Armstrong insisted that tokens pegged to fiat currencies should generate income for their holders. In his view, depriving people of the opportunity to earn rewards on their own funds is wrong not only economically but also ethically. Moreover, he warned of geopolitical consequences: countries that ban such earnings will be at a disadvantage in global competition.

The CEO of Coinbase cited China as an example, which is actively working on ensuring the yield of its digital yuan. If regulated stablecoins in the US lose the right to pay rewards, it will create a significant advantage for their offshore competitors. The paradox is that strict American regulation will push innovation into less regulated jurisdictions.

Villeroy de Galhau took an opposite stance. The head of the Bank of France argued that income from holding stablecoins poses a serious threat to the traditional banking system. In his opinion, such income should be limited or completely banned. This also applies to the digital euro, which the European Central Banks are working on — it should also not include payouts to owners.

Bitcoin as an Alternative to the Gold Standard: Armstrong’s Vision

The conversation gradually moved to a more fundamental level. Armstrong expressed a radical idea: global financial systems will soon switch to a “Bitcoin standard” instead of the traditional gold standard. In his view, Bitcoin can protect against the devaluation of paper money by providing a reliable store of value, similar to what gold once did.

“We are witnessing the birth of a new monetary system — the Bitcoin standard replacing the gold standard,” — said the CEO of Coinbase. This formulation references the classic economic history where gold was the guarantee of currency stability. Now, according to Armstrong, this role should be taken over by a decentralized cryptocurrency.

Villeroy de Galhau responded quite differently. He linked fiat currencies to the concept of democratic sovereignty. Monetary policy and traditional money, in his words, are expressions of national independence. Therefore, he prefers to trust independent central banks operating in democratic countries rather than “private issuers of Bitcoin.”

To this, Armstrong pointed out the paradox in his opponent’s position. Bitcoin as a decentralized protocol has no issuer in the traditional sense. Consequently, it is more independent of any centers of power than central banks themselves. No government, company, or individual can monopolize control over BTC.

Risks of Decentralization: France’s and the European Regulator’s Position

Villeroy de Galhau did not give a direct reply to Armstrong’s objection and instead focused on threats. His main concern: stablecoins and tokenized assets, remaining unregulated by the state, could create serious political and economic risks, especially in developing countries.

According to the head of the Bank of France, innovation without regulation breeds trust issues. The primary threat is the privatization of the monetary function and the loss of state sovereignty. If private digital money takes a dominant position in the market, entire jurisdictions risk becoming dependent on foreign issuers. This concerns not only France but all of Europe, where financial autonomy is considered a key element of political independence.

Cryptocurrency Legislation in the US: CLARITY and the Future of the Industry

The forum debate had real consequences. In the US Senate, a bill on cryptocurrency regulation called CLARITY was put on hold. Consideration was suspended indefinitely just a few hours after Coinbase openly opposed banning income from stablecoin holdings.

Armstrong’s position was clear: US crypto legislation should not prohibit competition between stablecoin issuers and traditional bankers. It’s a matter of market fairness and economic efficiency. However, the European approach, represented by Villeroy de Galhau, suggests the opposite: the state should actively protect its monopoly on the monetary function.

The confrontation between these two visions defines the current landscape of crypto legislation. Will the world follow the logic of the next-generation gold standard, as Armstrong envisions, or will states tighten control out of fear of losing financial sovereignty, as Villeroy de Galhau advocates? The answer to this question will have long-term implications for the development of the crypto ecosystem and the global financial order.