CEO & Co-Founder, BitGo
Financial System Shock: Why Your Money May Never Work The Same | Mike Belshe
Start earning interest in gold: https://Monetary-Metals.com/Lin
Mike Belshe, CEO of BitGo, discusses stablecoins, the future of banking, and the role of Bitcoin and the US dollar in a changing financial system.
Watch Mike's last interview: • Bitcoin Decoupling From Stocks? What's Nex...
*This video was recorded on May 5, 2026.
To get 5% off of your CoolWallet purchase, use my link: https://www.coolwallet.io/discount/da...
Subscribe to my Briefs channel: / @davidlinreportbriefs
Subscribe to my free newsletter: https://davidlinreport.substack.com/
Listen on Spotify: https://open....
About Mike Belshe
Mike Belshe, CEO and co-founder of BitGo, has been active in media appearances discussing crypto regulation, the company's January IPO, and the evolving role of digital assets in finance. In a June 2026 interview, Belshe praised the European Union's MiCA regulatory framework as a "live test case" for institutional crypto and argued that if the U.S. fails to pass the Clarity Act, crypto traders will look to overseas markets, weakening America's position in the space. He described the Clarity Act as a legislative path that would codify crypto policy beyond the "whims of the president," noting that even after passage, the CFTC would need 12 to 24 months to finalize market structure rules. Belshe also said he finds it "odd" that crypto requires special regulatory consideration, stating he naively believed the activity being regulated should matter more than the asset itself. In other appearances, Belshe discussed stablecoins as a "better deposit" that is lower risk, instant, and 24/7, and argued that the traditional banking model forces retail depositors to subsidize institutional lending. He stated that BitGo takes a fiduciary duty to protect client funds, contrasting this with retail bank deposit accounts. Belshe also addressed quantum computing threats to Bitcoin, saying the industry needs a solution for quantum-resistant signatures to remove a key objection from potential investors. He described crypto as providing "freedom" through sound money, and said that the U.S. remains a global leader in crypto regulation despite ongoing local regulatory churn.
Transcript (84 segments)
✨ AI-enhanced transcript with speaker attribution
M
Mike Belshe0:00
So the reason everybody can trust Bitcoin from the US to Japan to China to the European Union is because you don't have to trust anyone else. It's the one currency that is not manipulatable by a single government.
I
Interviewer0:13
If you could ask Satoshi one question, what would it be?
M
Mike Belshe0:17
I don't really care who Satoshi is. It's a curiosity and other than that it really doesn't matter.
I
Interviewer0:29
We're back at Consensus Miami. Joining me is my co-host, Bonnie.
B
Bonnie0:34
Oh, hi.
I
Interviewer0:35
There you go, Bunny Blockchain. And Mike Belshe is back with us. He was at our show last year. Check out the link down below to see Mike's interview from a year ago. Mike is the CEO of BitGo. Welcome back to the show, Mike. Good to see you.
M
Mike Belshe0:48
Thanks for having me, Mac. When am I going to start using blockchain banks, if you want to call them asset managers or digital wallets instead of my traditional bank? I'm just waiting for my DEX or even a centralized exchange to pay yield on a stable coin that I own. That's not happening now. Why is it not happening now?
I
Interviewer1:09
Why is it not happening now?
M
Mike Belshe1:11
Well, you put a lot of things in there. First off, what is a bank? BitGo is a bank. We are an OCC chartered national bank, but there are two types of banks: depository banks, which you're thinking of, and reserve banks. We're a reserve bank, also called a trust or custodial bank. We hold 100% of our assets in reserve. As for when you'll see traditional banks replaced by blockchain-based banks, probably a little bit of time, but it's coming quickly. We have stable coins, which are a better deposit; lower risk, instant, 24/7, fees almost nothing.
I
Interviewer1:54
Why do you say they're lower risk?
M
Mike Belshe1:55
People remember Luna, right?
I
Interviewer1:57
Okay. No, no, no. All right. All right.
M
Mike Belshe1:58
That's very difficult.
I
Interviewer2:00
Great. Sorry, I escalated that quickly. Great question.
M
Mike Belshe2:05
Just like there are different types of banks, there are different types of stable coins. Genius compliance stable coins, the types BitGo can issue, are one-to-one backed with very low-risk T-bill instruments. That's the risk-free rate in economics. Luna was an algorithmic stable coin, much trickier, not part of the Genius Act. When we talk about banking, we're not talking about those. The last hurdle for retail is how to get interest via stable coin. The Genius Act says you shall not give interest to retail holders for holding a stable coin. This is the wrong side of history. Eventually, we will have stable coins that give yield back to retail. Right now, traditional banks are worried about a run, but there's no systemic risk.
I
Interviewer3:20
The rest of the world outside the US, a lot of us are getting yields on our stable coins, 4% up to 5% or 7%. What is the fight really about?
M
Mike Belshe3:34
Well, you're not supposed to get passive yield, but it's okay to get yield if you...
I
Interviewer3:43
I don't know what that means.
M
Mike Belshe3:44
Here we are in the United States. We passed the Genius Act. The good news is it provides structure: one-to-one stable coin, not a Luna type, held by qualified issuers like BitGo. But it didn't get the interest right. We've got competing businesses: companies like BitGo totally pro-interest, and traditional banks, the ABA, fighting, saying there's systemic risk. That's false on multiple levels. We've seen this movie before. In the early 1970s, money markets backed by T bills were introduced, pegged to a dollar and backed by T bills. Banks had regulation Q preventing high interest rates. The T-bill interest was higher, they said there'd be a run, but there was no run. Regulation Q is gone. Everyone's happy. Banks are just trying to preserve their business model. At the end of the day, it's your money. You should get the risk-free rate on it.
I
Interviewer5:25
Why do you say we won't see a bank run?
M
Mike Belshe5:29
Because not everybody is going to move. It's simply not true that everyone chases the best yield. There are many considerations: trust, checking accounts, services, lending. Banks should compete with stable coin issuers. Most folks in the US get 0.1% on their checking while the risk-free rate is 4%. Why take risk with a bank that lends your money and gives you 0.1%? The reason is simple: banks don't need your money. They have plenty of cash and don't have good places to deploy it. Look at SVB: they had so many deposits they didn't know what to do, so they put it in 10-year T bills, which blew up the bank. If your only idea is to put money in a 10-year T bill, you're not a good financial manager. I can do that myself with a stable coin. Banks will have to compete and give a yield. Right now they're taking money from retail to subsidize low-interest loans to institutions.
I
Interviewer7:30
So what you're saying is there won't be a bank run because banks will try to compete.
M
Mike Belshe7:34
Well, how to compete?
I
Interviewer7:36
But they don't want to.
M
Mike Belshe7:38
They would rather just keep your money. Of course.
I
Interviewer7:40
That's the fight right now.
M
Mike Belshe7:41
Yes, sir.
I
Interviewer7:43
Who's winning? What's really happening?
M
Mike Belshe7:45
When it comes to money, we have a highly regulated industry. Software hasn't had more impact because of regulatory modes. Blockchains are getting past those modes. Companies like BitGo are on both sides: blockchain and traditional finance. We're a licensed bank in the US, Germany, Dubai, and Singapore. Once software comes in, banks have to compete.
N
Narrator8:28
Before we continue with the video, I'd like to address one of the fundamental problems of owning gold. Gold is seen as a store of value, but it doesn't generate yield. Monetary Metals introduces a model where gold can produce a yield paid in physical gold. Through their leasing platform, investors can earn up to around 4% annually with yield paid monthly in ounces. In an environment where many assets depend on price appreciation, this approach allows gold to serve as both a store of value and a source of income. The metal remains your asset and can be redeemed at any time. Thousands of investors are already earning a yield on their gold through Monetary Metals. Visit their website today to get started: monetary-metals.com/link in the description down below or scan the QR code.
I
Interviewer9:35
So, I've interviewed Tom Hoenig, former vice chair of the FDIC, and I asked him if he were still at the FDIC, would he insure crypto banks or any blockchain asset manager? He said no. He said, 'If I were still at the FDIC, I would make it a mandate to never insure crypto banks because I think crypto is a speculative asset. People are gambling. You want to lose your money gambling at the casino or at a crypto bank.' His words, not mine. You have the right to do so, but the government shouldn't be beholden to your risk and insure your risk. How would you respond to that?
M
Mike Belshe10:11
Well, I don't know if he said the government shouldn't be beholden, but the government is not FDIC. It's supposed to be private. He misspoke about his own product. Which would you rather use, an insured bank or an uninsured bank?
I
Interviewer10:31
I would use an insured bank.
M
Mike Belshe10:33
When we talk about an insured bank, written into law, we're talking about depositories. They take your money, lend it out, take risk, and sometimes fail. The FDIC is insurance because they screw up. So an insured bank is insured because it takes risks. Which is safer: a driver with insurance or someone who doesn't drive? Someone who doesn't drive. BitGo is a bank, but a reserve bank. We're not eligible for FDIC because we're not a depository. We hold assets in 100% reserve, 100% of the time. We could have a full bank run today and satisfy it tomorrow. Show me a depository that can make that claim. They can't because they don't have the assets. That's what caught SVB. I understand his concern about crypto, but it's different from taking risk. Holding 100% reserve is less risky than any bank.
I
Interviewer12:02
So, in the future, traditional banks will do that as well. Is that what you're suggesting?
M
Mike Belshe12:06
They'll have to do what? 100% reserve? No, I don't think so. Depositories have a place, but times are changing. 150 years ago, you went to a bank for a loan; depositors kept money safe. The bank knew you. Today, banks don't have that ability. Mortgages are securitized and sold to Wall Street. Commercial lending can move to private equity on a blockchain. The coupling of retail deposits with institutional lending is from the past. Blockchains will lead the way.
I
Interviewer13:53
Would you consider switching BitGo to a fractional reserve model? Would that be more profitable for you?
M
Mike Belshe14:01
No, that's not of interest. We're not trying to be a bank in the traditional form. We're an infrastructure provider. SoFi is a great client. The reason we have a federal charter is so clients know their money is at the utmost extreme of protection.
I
Interviewer14:36
Is stable coin making the Fed less powerful?
M
Mike Belshe14:41
Is stable coin making the Fed less powerful? I don't think so. Stable coins are backed by short-term T bills, which are regulated by the Fed.
I
Interviewer14:55
But it's short-term. So the argument is that whatever interest rate they have to buy, that means the Fed's power is less powerful now.
M
Mike Belshe15:15
I don't think so. The government has a spending problem; it needs to borrow. That has nothing to do with crypto. Even without crypto, the government would have to deal with this. Short-term rates mean they have to renew in a year. At the end of the Trump administration, he dabbled with a 100-year T bill. If we had locked in 100-year T bills at low rates, it would have been fantastic. The T-bill rates have nothing to do with crypto. Crypto can help satisfy some of that borrowing short-term, but the government has to compete on interest rates.
I
Interviewer16:20
We had you on the show a year ago, just over a year. Looking at the chart, we're currently at $81,000. Bitcoin surpassed $100,000 in November 2024, and by March it was about $100,000. What is the market not understanding about Bitcoin if we believe it's underpricing its true potential? It's underperformed the NASDAQ and the Mag 7 stocks in the last year. Why not?
M
Mike Belshe16:53
Markets are complicated, but the premise of Bitcoin remains strong. Governments have a spending problem. They pay for debt through inflation. There's no way to pay back the debt except by printing money. The market goes up and down; I can't predict exactly, but the thesis remains very strong. Governments are becoming increasingly isolated. How will they settle between each other? Under Biden, he sanctioned Russia and stole billions of dollars. When the US has political power, it tells other governments to use something other than dollars. Gold is difficult to move. Bitcoin is the one currency not manipulatable by a single government.
I
Interviewer18:46
Are you suggesting that in the future governments will settle in Bitcoin?
M
Mike Belshe18:50
Absolutely.
I
Interviewer18:52
I love that. Absolutely.
The state of Formosa closure has taught us that Iranians wanted to bypass the dollar through stable coins. They wanted US dollar-backed stable coins as well as Chinese yuan. They didn't accept Bitcoin publicly. What has that experience taught you about Bitcoin as a settlement tool?
M
Mike Belshe19:20
I don't deal with Iran; it's a sanctioned country. The original reports were that they were taking Bitcoin. There was also a seizure of $350 million of Tether. Any stable coin is ultimately backed by T bills and cash, so it's confiscatable by the US government. CBDCs from China or the EU will have the same issues. Governments will learn they can't hold the currency of rivals because rivals can take it away. That's why ultimately Bitcoin is the one governments can't control.
I
Interviewer20:16
Will that put more pressure on governments to restrict Bitcoin transactions, like China?
M
Mike Belshe20:24
We will see moves on a temporary basis. When someone has a control point, they try to defend it. Some governments may try to get rid of Bitcoin. But every government massively in debt can only get out by printing money, diminishing the value of their currency. Citizens seek refuge elsewhere. Whether in Argentina, Venezuela, the US, the pattern is the same. People will seek an alternative safe haven, and that will end up being Bitcoin.
I
Interviewer21:24
Weaker currencies like Zimbabwe and Argentina. If more people can access US stable coin, what does that do to their local currencies?
M
Mike Belshe21:37
This is good for the dollar. The dollar is the best fiat currency globally. The US has great protections for holders. Sanctioned countries are a fringe area. Hyperinflation in Zimbabwe, Argentina, etc., happens because governments struggle to maintain currency value. Many countries have already moved to dollar-backed currencies. The US dollar is the strongest. Many will fold into the dollar, prolonging its good life. It's good for America.
I
Interviewer22:58
What could be bad for the dollar? What would cause a dollar selloff?
M
Mike Belshe23:04
Besides erosion of trust in the fiat system and fiscal responsibility, stronger China could cause capital flows away from the dollar.
I
Interviewer23:18
Would that be the reason?
M
Mike Belshe23:21
The reason the dollar declines is erosion in trust. That comes from printing unreasonably, devaluing it, and whether you can trust that you'll have it tomorrow. Russia and Iran don't trust it. Other countries worry if their political climate dislikes them, America will yank the dollar. As the reserve currency, you have a responsibility to maintain trust on both axes: not stealing money and not devaluing. China is not a viable alternative; it struggles with foreign investment and lacks protections. The US capital markets are much stronger, more than 50% of the global financial capital markets. China's are only 25 years old, and foreigners can't own businesses. The US is stronger on all fronts.
I
Interviewer24:54
I want to switch gears and talk about the IPO that happened earlier in the year. $212 million raised. What can investors expect from the grand strategy that BitGo is undergoing?
M
Mike Belshe25:11
As a public company CEO, I can't answer that. I can't talk about future statements. I can tell you why we're a public company. I'm proud of the team. The US capital market provides high transparency. Wall Street coming into digital assets needs partners with the utmost scrutiny. Our finances are public; you can see our performance compared to private competitors losing money. It's been good for us. The timing is really good. We're happy and looking forward to continuing on the US capital markets.
I
Interviewer26:16
During your IPO road show, you said a lot of institutional investors kept asking about quantum computing.
M
Mike Belshe26:23
Yes.
I
Interviewer26:24
What are they asking? What is your answer?
M
Mike Belshe26:28
Quantum computing is a concern. Some fear a quantum computer could crack Bitcoin. It's advancing quickly, but personally it's far away. Cryptographers see no evidence of a near-term quantum attack. But it's a fear about trust. We can develop quantum-resistant algorithms. The Bitcoin and Ethereum teams are working on it. In a year, it won't be an issue because we'll have prevention mechanisms. But the next wave of entrants with billions need absolute assurance.
I
Interviewer27:57
Will Bitcoin take measures to make the custodian side of the business quantum resistant?
M
Mike Belshe28:03
We as a custodian will do everything to be quantum resistant. Even without protocol solutions, we never reuse addresses and construct wallets to minimize exposure. As new developments come, we'll incorporate them.
I
Interviewer28:33
Last year you said the biggest concern is Satoshi's wallet. Is it still a concern?
M
Mike Belshe28:42
Yes. Satoshi has about a million bitcoins. His coins were encoded in a way that exposes the public key, potentially exploitable by a quantum computer. Even if we solve the problem for everyone, Satoshi might not be alive to move his coins. Bitcoin has to deal with that. But it's not realistic; if someone tried to steal them, it would be noticeable and the price would tank. A white hat hacker would use it to claim quantum supremacy but is unlikely to steal. It's still theft. It's not a big practical problem, but some worry.
I
Interviewer30:08
Final question. What will the future of traditional finance look like in relation to Bitcoin and blockchain? Will TradFi adopt blockchain en masse? Will we see BitGo within JP Morgan?
M
Mike Belshe30:28
They're right over there. JP Morgan has a big display booth about their settlement on chain.
I
Interviewer30:33
What did you get right about the industry that maybe Wall Street hasn't adopted early on?
M
Mike Belshe30:39
I would never say we got something right. Sometimes you see a technology and see value. I saw some value in it, and it turned out right. But it's speculative. The reason I saw it earlier is a higher tolerance for risk. New technology is high risk; over time, you mitigate risks with regulation, insurance, and backing. Now it's had enough time for people to see it works. As we keep moving, more conservative companies can participate in the asset class.
I
Interviewer31:34
If you could ask Satoshi one question, what would it be?
M
Mike Belshe31:40
That's a great question. I'll first answer with a non-answer: I don't really care who Satoshi is. It's a curiosity, but it doesn't matter. From a technologist perspective, I fought for larger blocks. I would ask Satoshi what he thinks about the size of a block.
I
Interviewer32:11
Could you elaborate on that?
M
Mike Belshe32:13
Bitcoin doesn't scale well. It has small blocks. As block size increases, propagation takes longer. Some want small blocks so you can run it on small machines. Increasing block size might impair decentralization. Another question: did he anticipate mining pools? He might not have. Mining pools aggregate power, increasing the risk of a 51% attack. They stabilize income but could gain control. I think maybe he didn't anticipate that.
I
Interviewer32:51
Why does that matter?
M
Mike Belshe32:54
Mining pools allow a party to aggregate power. A 51% attack lets them control blocks. Pools take miners together for steady income, which is good for miners, but if a pool gets over 51%, it has control. I think maybe he didn't anticipate that.
I
Interviewer33:32
That was very interesting.
M
Mike Belshe33:33
Thank you. I hope he can answer those questions to you alive one day.
I
Interviewer33:38
I'm not sure I care.
M
Mike Belshe33:41
All right. Great way to end. Thank you.
I
Interviewer33:43
Thank you. Thank you, Mike.
B
Bonnie33:44
Thank you, Mike.
M
Mike Belshe33:44
Thank you, Bonnie.