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Coinbase CEO Brian Armstrong is pushing for legislative support to enable stablecoins to offer direct interest earnings calling it crucial for US economic strength and consumer benefits. He explains that unlike traditional banks stablecoin issuers are hindered by legal uncertainties which prevent them from offering interest on digital dollar holdings. Armstrong sees onchain interest as a win-win providing consumers with fair market-rate yields and maintaining US innovation leadership.
Armstrong highlighted the gap between the Federal Funds rate and the negligible interest rates received by consumers on savings which leads to a loss of purchasing power especially amid inflation. He envisions onchain interest democratizing financial access and empowering people globally by offering a stable and accessible financial system through crypto technology.
By enabling interest-bearing stablecoins the US could significantly enhance its economic landscape and maintain dollar dominance Armstrong argues. He urges quick legislative action to include clear provisions for onchain interest in stablecoin regulations which would prevent the US from missing out on trillions in global financial flows and boost economic activity worldwide.
