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Coinbase CEO Brian Armstrong Pitches for On-Chain Interest to Stablecoin Issuers
In a recent statement, Coinbase CEO Brian Armstrong emphasized the potential benefits of allowing on-chain interest for stablecoin issuers. This move would enable regulated stablecoins to deliver interest directly to consumers, much like traditional savings or checking accounts.
Armstrong believes that if legislative changes permit stablecoin issuers to pay interest to holders, it could lead to a significant improvement in the US economy. The CEO estimated that stablecoin users could potentially earn an impressive 4% yield on their holdings, surpassing the average interest rate offered by US savings accounts (0.41%) as of 2024.
Armstrong also highlighted the potential benefits for the US dollar’s global dominance. By providing a higher yield than traditional savings accounts and incentivizing the use of USD-pegged stablecoins, he claims that this move would lead to increased consumer spending, saving, and investing. This could have a positive impact on local economies where these stablecoins are held.
In his statement, Armstrong expressed concern about missing out on billions more USD users and trillions in potential cash flows if on-chain interest is not allowed.
Source: https://www.coinspeaker.com/coinbase-ceo-brian-armstrong-pitches-on-chain-interest-stablecoin-issuers/
