Coinbase: US Stablecoin Interest Limits Risk U.S. Falling Behind China

Coinbase warned that if the US bans or restricts interest payments on stablecoins, it could fall behind China in the digital finance race. According to The Block, Coinbase Chief Policy Officer (CPO) Faryar Shirzad said, "China's decision to allow interest payments on its central bank digital currency (CBDC), the digital yuan, signals the beginning of a full-blown international digital money race. The US can no longer afford to delay allowing interest payments. If it neglects to address the issue of stablecoin interest payments in negotiations over the CLARITY Act, which the US Senate is currently pursuing, it could fall behind in global competition." The People's Bank of China previously issued guidelines allowing interest payments on central bank digital currency (CBDC) wallets.