Coinbase CEO Defends China’s CBDC Interest Policy — But Why?

Coinbase CEO Brian Armstrong publicly supported China's policy of paying interest on its central bank digital currency (CBDC), framing it as a competitive advantage that benefits ordinary people, and expressed concern that the US is missing this point. Armstrong's defense comes as Coinbase fights to maintain a key revenue stream under the GENIUS Act, which allows platforms to share yields with stablecoin holders, a provision US banking groups are actively lobbying to eliminate, arguing it threatens bank lending capacity.

However, Armstrong's comparison to China was met with skepticism, as analysts pointed out that the digital yuan is not a stablecoin and that its new interest program, subsidized by commercial banks, appears to be a response to low adoption rather than a sign of strength. The core of the US debate remains whether private platforms should be allowed to compete with banks by offering yields on stablecoins, a practice Armstrong views as crucial for consumers and a 'red line' in regulatory discussions.

(Source：BeInCrypto)