Carol Masser

Tiffany Wade of Columbia Fred Needle, great to have you on Bloomberg Tech.

Thank you very much.

Now, Bloomberg is in Davos this week speaking to leaders across finance and tech at the World Economic Forum.

Coinbase CEO Brian Armstrong is speaking with Bloomberg's Emily Chang.

Listen to this.

Yeah, so that's certainly one of the core parts of the debate.

I think that some of the bank CEOs I've spoken with have kind of said, hey, we have this really high regulatory burden with being a bank.

And what you're doing kind of looks like a bank.

And so we think it's super unfair.

You should have to have a bank license too.

And what I tell them is, well, we're not doing something very important that you do.

We do not do fractional reserve lending, which means, for those who don't know, at a bank, you deposit your funds.

they're not keeping your money there.

They're actually lending it out and earning interest on that and then they pay you a very small percentage of that.

Like the average savings account makes like 14 basis points or something.

And that's called net interest margin and that's the whole bank business model.

And so that's why they have such high regulatory burden because there can be a run on the bank.

Like your money is not all there.

In a crypto world, there's a 100% reserve.

So all your money is there.