The post Coinbase Warns: Limiting US Stablecoin Rewards May Boost China’s Digital Yuan appeared on BitcoinEthereumNews.com.

Coinbase’s Chief Policy Officer Faryar Shirzad warned U.S. lawmakers that limiting rewards on U.S.-issued stablecoins could give China a major edge, as its central bank plans interest payments on the digital yuan starting 2026 to boost adoption amid over 3.48 billion transactions processed. China’s e-CNY evolution: Transitioning to a digital deposit currency with interest from commercial banks in 2026. Over 3.48 billion transactions processed by end of November, showcasing growing adoption. mBridge project handled 4,047 cross-border payments totaling $55.34 billion, with digital currencies dominating 95.3%. Coinbase warns U.S. lawmakers: Limiting stablecoin rewards risks China advantage with e-CNY interest in 2026. Explore GENIUS Act implications for U.S. dollar dominance. Stay ahead in crypto policy battles—read now! What Did Coinbase Warn U.S. Lawmakers About Stablecoin Rewards? Stablecoin rewards are under scrutiny as Coinbase’s Chief Policy Officer Faryar Shirzad cautioned U.S. lawmakers against restricting interest on U.S.-issued stablecoins. He highlighted China’s move to offer interest on its e-CNY via commercial banks from 2026, potentially handing rivals a competitive edge. The GENIUS Act, backed by the Trump administration, aims to position U.S. stablecoins as the global settlement standard, but Shirzad urged careful handling to preserve U.S. financial primacy. How Is China Advancing Its Digital Yuan with Interest Payments? The People’s Bank of China (PBOC) announced that commercial banks will pay interest on e-CNY holdings starting January 1, 2026, transforming it from a basic digital currency into a digital deposit. PBOC Deputy Governor Lu Lei stated this follows a decade of pilots, with the e-CNY now processing 3.48 billion transactions by November’s end. Lei emphasized, “After repeated demonstrations and open pilots, a preliminary ecosystem for the digital yuan has been established, forging a development path for digital currency with Chinese characteristics, led by the central bank.” Trials have shown strong public reception for cross-border and…

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Filed under: News - @ December 31, 2025 11:25 am