A Coinbase executive said changes to the GENIUS Act could weaken US dollar stablecoins as China moves to boost the digital yuan by allowing interest-bearing wallets.
A senior executive at Coinbase warned that changes to the US stablecoin framework could weaken Washington’s position in the global race for digital payments, just as China moves to make its central bank digital currency (CBDC) more competitive.
In a post on X, Faryar Shirzad, Coinbase’s chief policy officer, said the debate over whether US-issued stablecoins can offer “rewards” under the GENIUS Act could hurt US dollar stablecoins’ global competitiveness. He pointed to a recent announcement from China’s central bank as evidence that rival financial systems are moving quickly to enhance the appeal of state-backed digital money.
The People’s Bank of China, China’s central bank, this week outlined a framework that will allow commercial banks to pay interest on balances held in digital yuan wallets starting Jan. 1, 2026. Lu Lei, a deputy governor at the PBOC, said the change would move the e-CNY beyond its original role as a digital cash substitute and integrate it into banks’ asset and liability management.
