Coin loot is the default. It'd be a sad, pathetic thing to kill someone and see all that coin sitting in their inventory.
Maybe not the right thread but: xp loss for pvp deaths would be more beneficial than not as long as it was less xp lost than a pve death. Even if half the normal xp was lost it would be enough. Xp will be so precious in a classic grind that it won't be worth the hour(s) of hammering out mobs to rush in naked and maybe die again.
Xp gain for a pvp kill has to be more seriously thought out. But, as long as there are working timers preventing gaining / losing large amounts of xp through bind camping I think nearly any variation of this could work.
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