Stablecoin Yield Prohibition Gives Digital Yuan Leg Up Over USD: Scaramucci
Scaramucci argues the CLARITY Act's stablecoin yield ban harms the US dollar's competitiveness against China's yield-bearing Digital Yuan.Summary
Anthony Scaramucci, founder of SkyBridge Capital, contends that the prohibition on yield-bearing stablecoins within the US CLARITY Act places the US dollar at a competitive disadvantage compared to China’s Digital Yuan (e-CNY), which allows commercial banks to pay interest on deposits. Scaramucci suggests this move benefits incumbent banks by blocking competition from stablecoin issuers, questioning which rail system emerging countries will choose when one offers yield and the other does not. Coinbase CEO Brian Armstrong echoed these concerns, stating that banning stablecoin rewards undermines US dollar competitiveness in foreign exchange markets. The ban on yield-bearing stablecoins is seen by industry executives as a measure designed to protect the traditional banking sector, which Bank of America CEO Brian Moynihan warned could face $6 trillion in deposit outflows due to stablecoins.
(Source：Cointelegraph)