Coinbase CEO Praises Trump’s Crypto Stance, Faces Criticism at Davos
At the World Economic Forum (WEF) in Davos, Switzerland, Coinbase CEO Brian Armstrong expressed optimism about increased investment in cryptocurrency, citing the potential impact of Donald Trump’s presidency. However, his views faced rebuke from Lesetja Kganyago, the Governor of the South African Reserve Bank.
During a panel discussion, Armstrong stated that “The Trump effect cannot be denied here.”
Kganyago expressed skepticism about the lobbying efforts of the crypto industry, asserting that Bitcoin didn’t make sense as a reserve asset compared to traditional commodities.
“I would have a significant problem with a lobby that says governments should hold this asset or hold that asset,” Kganyago said. “There is a history to gold. There was once a gold standard… If we now say ok, bitcoins. What about platinum? What about coal? Why don’t we hold strategic beef reserves, or mutton reserves, or apple reserves? Why Bitcoin?”
Armstrong referenced Trump’s plan to establish a U.S. government bitcoin stockpile, a move that Kganyago deemed as potentially influenced by the lobbying efforts of the cryptocurrency industry, adding that it risked “regulatory capture.” The governor also took issue with what he saw as the industry’s efforts to influence regulations in the financial sector. He pointed out that the industry, including Coinbase, spent over $119 million supporting pro-crypto U.S. congressional candidates. Kganyago stated that it would be a problem “If regulation is going to be established through the power of money.” Armstrong responded by saying the impact of pro-crypto groups in the U.S. demonstrated that “democracy [was] working.”
Jennifer Johnson, CEO of Franklin Templeton, also present at the forum, noted that some institutional investors were seemingly oblivious to the rapid growth of cryptocurrencies, stating, “It’s literally like two parallel universes.” Johnson pointed out the need for regulatory clarity to bring this sector fully into the mainstream for larger institutional investment. The article also pointed out that crypto executives celebrated Trump’s inauguration with a ball in Washington last week. These events marked a stark contrast to 2022 when significant fraud undermined the industry as a whole, with many investors taking significant losses as a result.
Despite Bitcoin’s price cooling after Trump’s inauguration speech made no mention of crypto assets, Armstrong said that the plans for a bitcoin reserve were still “alive and well.”
