Overview
- Chinese commercial banks began paying interest on the Digital Yuan on Jan. 1, with yields tied to users’ e‑CNY balances.
- Coinbase CEO Brian Armstrong says banning rewards on stablecoins would weaken U.S. competitiveness in programmable payments.
- Senate Banking Committee work on a market-structure bill includes debate over limiting stablecoin yields, with Democrats warning of potential deposit shifts from community banks.
- Coinbase points to studies from Charles River Associates and Cornell that find little evidence stablecoin rewards reduce community bank deposits or lending capacity.
- Separately, World Liberty Financial applied for a national banking license to issue and custody a dollar-pegged stablecoin called USD1.