Coinbase warns US risks falling behind China on stablecoin interest policy

Coinbase has warned that the U.S. could fall behind China in the competition for digital finance if it prohibits or limits interest payments on stablecoins, The Block reported. Faryar Shirzad, the company's Chief Policy Officer, stated that China's decision to allow interest payments on its central bank digital currency (CBDC), the digital yuan, signals the beginning of a global digital money race. He emphasized that the U.S. can no longer delay a decision on allowing interest payments. Shirzad cautioned that if the issue is neglected during the U.S. Senate's negotiations on the market structure bill (CLARITY Act), the country risks losing its global competitiveness. Previously, the People's Bank of China had issued guidelines permitting interest payments on CBDC wallets.