Coinbase CEO Brian Armstrong emphasizes the need for U.S. regulations to permit earning interest on stablecoins, believing this will benefit consumers, enhance financial access worldwide, and strengthen the national economy.
Benefits of Interest on Stablecoins
Armstrong believes that 'onchain interest' could work like an interest-bearing account, providing users access to yields comparable to the Federal Reserve's benchmark rate. Currently, consumers earn minimal interest on savings accounts, leading to a loss in purchasing power.
Brian Armstrong's Perspective
Armstrong highlights that billions worldwide remain underbanked and could benefit from access to interest-earning U.S. dollars via stablecoins. He also points out that stablecoins rank among the largest holders of U.S. Treasuries, reinforcing dollar dominance; yet, regulatory barriers prevent them from offering interest like banks do.
Legislation and Future Prospects
Armstrong calls on lawmakers to address this in upcoming legislation, arguing that a free-market approach would benefit consumers and retain innovation within the United States. His question to regulators is why the existing technology is not being utilized.
Brian Armstrong stresses that allowing interest on stablecoins could significantly alter the financial landscape, offering new opportunities to consumers and supporting dollar dominance globally.
