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Coinbase CEO Advocates for Interest-Bearing Provisions in US Stablecoin Legislation
In a recent post, Coinbase CEO Brian Armstrong emphasized the importance of including interest-bearing provisions in upcoming US stablecoin legislation. He believes that onchain interest, which would allow users to earn interest directly from reserve assets without the need for intermediaries, could have significant benefits for both individuals and the economy.
Armstrong argues that traditional banking systems are no longer suitable for today’s digital world, emphasizing the need for innovation in financial services. He suggests that the US should take a proactive approach by enabling onchain interest-bearing stablecoins. This concept would allow consumers to earn a higher yield than traditional savings accounts, thereby stimulating economic growth.
The Coinbase CEO believes that excluding interest-bearing provisions from legislation would not only hinder the adoption of innovative financial tools but also keep trillions in potential cash flows out of the US economy. Armstrong notes that if left unchecked, this could lead to missing out on billions more USD users and significant economic benefits.
Armstrong’s vision aligns with the concept of decentralization, which aims to create a more accessible and inclusive financial system. He highlights the potential for stablecoins to be used by underbanked communities worldwide, providing equal access to financial tools and opportunities.
In addition to the benefits for global economic development, Armstrong emphasizes the necessity for regulatory frameworks that facilitate innovation. This includes the inclusion of interest-bearing provisions in any future legislation related to stablecoin regulation.
Source:
Source: https://blockonomi.com/coinbase-ceo-advocates-for-interest-bearing-provisions-in-us-stablecoin-legislation/
