"Armstrong, meanwhile, made headlines while clashing with Bank of France governor François Villeroy de Galhau over stablecoin yields on a Davos panel titled "Is Tokenization the Future?". Armstrong contrasted stablecoins, which are fully backed by reserves, with bank deposits that are lent out under a fractional reserve system, adding that tokens like USDC allow customers to earn higher interest on their digital dollars. Villeroy de Galhau, for his part, portrayed interest-bearing private tokens as a fundamental threat to the banking system."
"President Donald Trump's threats about Greenland may have been the main focus at the world's glitziest economic conference, but crypto was not far behind. Trump boasted about American dominance in the sector, and other major crypto figures, like Coinbase CEO Brian Armstrong and Binance founder Changpeng 'CZ' Zhao, made public appearances at Davos. In his speech on Wednesday, Trump boasted about his role in making America the world's marquee player in crypto. "I'm also working to ensure America remains the crypto capital of the world.""
"As for Zhao, his Davos turn was decidedly more colorful as the former Binance CEO, described serving four months in prison for failing to implement proper money laundering controls-a charge for which he was later pardoned by Trump. Most notably, he described in crude terms the process of guards strip-searching him for contraband. The Wall Street Journal reported Binance's ties to Trump's crypto ventures preceding his release from jail."
Davos featured high-profile crypto activity with U.S. political figures and industry executives publicly engaging on policy and market issues. President Donald Trump emphasized American leadership in cryptocurrency and expressed optimism about the Clarity Act. Coinbase CEO Brian Armstrong defended stablecoins like USDC as fully reserve-backed instruments offering higher yields compared with fractional-reserve bank deposits. Bank of France governor François Villeroy de Galhau warned that interest-bearing private tokens threaten traditional banking. Former Binance CEO Changpeng 'CZ' Zhao recounted a prison stint, faced Wall Street Journal scrutiny over ties to Trump, denied business relationships, and said he is pursuing tokenization talks with governments.
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