We've all seen Brian Armstrong set the record straight at the World Economic Forum when the Banque de France governor said he doesn't trust the company running bitcoin. But did you know that's not the only thing the governor got wrong? https://www.cato.org/blog/french-central-bank-wrong Villeroy de Galhau also tried to appeal to history by pointing to the experience of free banking in the United States. He described this era as suffering from “many crises of confidence.” He did so in an attempt to undermine trust in private money, but the only trust undermined here should be that in governments. What he didn’t say is that crises occurred during this period in large part because of the laws and regulations in place that made banks unstable. My colleague, George Selgin, has gone to great lengths to correct this record. The general public may be forgiven for not knowing this history, but central bankers have no excuse. Villeroy de Galhau then said gold was a “sovereign asset” governed by the state. However, this claim is similarly misleading. The use of gold as money predates legal tender laws. Villeroy de Galhau took this opportunity to also say that CBDCs are the next evolution of money. If CBDCs are an “evolution” of anything, they reflect the evolution of state control over monetary systems—not a natural progression arising from the market. Turning away from the forum, Villeroy de Galhau also mentioned his support for CBDCs in his “New Year’s address.” Curiously, he said, “2026 will see the first central bank digital currency.” Taken as written, this statement is wrong. The first CBDC was arguably created in 1992. That project died, but CBDCs have seen a resurgence. China, India, Jamaica, Kazakhstan, Nigeria, Russia, The Bahamas, and others have all launched CBDCs in one form or another. So, in the first 21 days of 2026, the Banque de France governor managed to get it wrong on Bitcoin, US history, gold, and CBDCs. That track record is almost as bad as central banks managing inflation.
Banque de France Governor François Villeroy de Galhau: Central banks are more democratic and independent than "private issuers of bitcoin." Brian Armstrong: "In the sense that central banks have independence, Bitcoin is even more independent. There's [no one] who controls it."
68 economists have come out of the woodwork calling for the ECB to launch a CBDC. I guess this is a good reminder that just because a lot of people say something doesn’t mean it’s right. image This letter is particularly troubling, though. I say that because their argument lacks an understanding of both central bank digital currencies (CBDCs) and economic history. The economists claim that a CBDC like the digital euro would be “an essential safeguard of European sovereignty, stability, and resilience.” 📄.pdf Setting aside their lack of evidence to back the claim, where has this been true in practice? It certainly isn’t true in The Bahamas. https://www.cato.org/commentary/bahamians-didnt-want-cbdcs-so-now-theyre-being-forced-use-them It certainly isn’t true in Jamaica. https://www.cato.org/briefing-paper/cbdc-lessons-caribbean It certainly isn’t true in Nigeria. Do I need to go on? The CBDC experience varies country to country, but no CBDC has been “essential” in any sense of the word. Yet, even within Europe’s borders, the economists appear to misunderstand economic history. Pointing to the dominance of non-European financial institutions, the authors say the only defense is for the European government to intervene. Yet, interventions by the European government are partly why European businesses have struggled to gain ground. https://www.cato.org/blog/europe-blames-america-its-payment-problems-digital-euro-wont-help Rather than being free to serve customers, European businesses must navigate a maze of red tape: customer-surveillance mandates, extensive reporting rules, and regulatory fragmentation. Making matters worse, price controls—such as caps on interchange fees—prevent new entrants from generating the revenue needed to manage these compliance burdens. It’s not a market failure if the source of the issue is government intervention. If the economists are right about one thing, it’s that the European Parliament should be careful about who it takes advice from.
It took two years, but the Reserve Bank of Malawi has selected eCurrency to build its CBDC. image
For the crime of calling out corruption in Russia, Anna Chekhovich has seen the financial system weaponized against her time and again. However, that hasn't stopped her. Tune in to the Cato Institute podcast below to hear her story. https://www.cato.org/multimedia/cato-podcast/debanked-dissent-how-putins-reach-extends-abroad
Secretary Scott Bessent is building a legacy of financial surveillance and control. The announcement that he is stopping Americans from sending their money abroad and increasing surveillance under the Bank Secrecy Act should be condemned. Yet, it should be no surprise. Yet, it should be no surprise. It was only just last year that Secretary Bessent increased financial surveillance to target transactions as little as $200. After being sued for this violation of fundamental freedoms, he responded by expanding surveillance to cover even more Americans. This playbook has been used time after time. When the Bank Secrecy Act was first passed, Congress claimed Americans were hiding money in Swiss bank accounts. Then it was expanded to fight the war on drugs. Then it was expanded again for the war on terror. Now it seems it’s the war on fraud. Fighting crime is a worthy endeavor. However, we cannot sacrifice the freedoms that make America great in the process.
With my new report on debanking out, I decided to sit down with @Anna Chekhovich to talk about her experience being debanked. Anna's case serves as a cautionary tale about how authoritarians can reach beyond their borders. https://www.cato.org/multimedia/cato-podcast/debanked-dissent-how-putins-reach-extends-abroad