France's central bank and Coinbase clash over currency trust system — international discussions at Davos

In January 2025, at the World Economic Forum held in Davos, Switzerland, a fundamental conflict emerged between leaders of the French Central Bank and representatives of the blockchain industry regarding where trust in currency should originate. This debate is prompting a structural reconsideration of the trust foundation of the financial system in an era where central bank-issued currencies and cryptocurrencies coexist.

Fundamental Differences in Positions Between Central Bank Advocates and Bitcoin Supporters

François Villeroy de Galhau, Governor of the Bank of France, emphasized that trust in currency should originate from regulated public institutions rather than private companies issuing cryptocurrencies. In his view, the independence of the central bank is the greatest guarantee supporting the value of its currency.

In response, Coinbase CEO Brian Armstrong pointed out that Bitcoin is a decentralized protocol without a single issuer, and its independence surpasses that of central banks. He argues that competition between Bitcoin and central banks should lead to a better monetary system. He believes that allowing citizens to freely choose their currency from multiple options is the most effective check against government spending waste.

Balancing Regulation and Innovation — Strategic Positioning of the Digital Euro

Interestingly, de Galhau showed some willingness to find common ground. He acknowledged that historically, currencies have resulted from public-private cooperation, and recognized the potential for tokenization technology to contribute within an appropriate regulatory framework. However, his stance is clear: regulation is not the enemy of innovation but an essential element to ensure trust.

The Digital Euro project, pursued by France and the Eurozone, embodies this philosophy. De Galhau stated that the Digital Euro aims to modernize the payment system and maintain the monetary sovereignty of the Eurozone, and it is not intended to replace private financial institutions. In other words, France’s digital currency strategy is an approach that harmonizes technological innovation with the traditional role of central banks.

Questions About the Source of Currency Trust — A Call for a New Financial Order

What is clear from this dialogue is the fundamental difference in views on the source of trust in currency. One side advocates trust through power structures and regulation, while the other emphasizes trust through technological independence and market choice. Both discussions serve as important indicators of the future direction of the financial system.

How will France and Europe integrate these two positions into their digital strategies? The answer will likely determine the shape of next-generation currency systems and financial regulations.