Coinbase CEO cites China’s digital yuan interest policy amid US stablecoin rule fight

Beincrypto reports Coinbase CEO Brian Armstrong defended China’s decision to pay interest on its digital yuan as a model for U.S. stablecoin policy while his company fights to preserve a yield-sharing revenue stream under threat from banking industry lobbying. Armstrong took to X on January 8 to praise China’s approach, arguing rewards on stablecoins would benefit ordinary Americans without disrupting bank lending and calling for letting “the market do both.” Chinese analysts reacted skeptically: crypto analyst Phyrex said the digital yuan is not a stablecoin and that interest payments address low adoption rather than signal strength.

The interest program, which took effect January 1, is reportedly subsidized by commercial banks rather than the central bank and its rates are likely below standard demand deposit rates; holders already earn interest on yuan in WeChat Pay and Alipay, a dynamic that had left the digital yuan with little incentive to attract users.

Key Topics

Crypto, Coinbase, Brian Armstrong, Digital Yuan, Genius Act, American Bankers Association