Overview
- The People’s Bank of China plans to let commercial banks pay interest on e‑CNY wallet balances starting January 1, 2026, signaling a push to boost digital yuan adoption.
- Coinbase policy chief Faryar Shirzad cautioned that restricting platform “rewards” on U.S. stablecoins could erode their global appeal and hand an edge to foreign alternatives.
- Jake Chervinsky of Variant Fund framed the rewards question as a national‑security issue, arguing that rollbacks would advantage China in digital payments.
- Under the GENIUS Act passed earlier in 2025, issuers cannot pay interest, but platforms can offer third‑party rewards, a provision banks want Congress to narrow or ban.
- Coinbase CEO Brian Armstrong called reopening the law a “red line,” as industry points to reported market growth and notes that Coinbase and PayPal already offer yield on some stablecoins.