China Begins Paying Interest on Digital Stablecoins as Coinbase Warns U.S. Risks Losing Crypto Leadership

China has moved to allow interest payments on digital currency holdings, including stablecoins and its digital yuan, as part of a national push to boost adoption and expand its influence in global digital finance — a development that could reshape the competitive landscape for digital money.

At the same time, Coinbase’s Chief Policy Officer has warned U.S. policymakers that ongoing debates over stablecoin interest restrictions under the GENIUS Act may inadvertently weaken America’s position in the race for crypto innovation and dominance, potentially ceding strategic advantage to global rivals that embrace yield-bearing digital currencies.

Clever Robot News Desk 9^th January 2025