Key Insights
- Coinbase CEO Brian Armstrong believes the US legislation should allow Onchain Interest for stablecoins.
- The Crypto Exchange CEO believes such a move would benefit the US Economy, US consumers, and Global Crypto Users.
- Coinbase is the Dominant Crypto Exchange in the US market.
Coinbase CEO Brian Armstrong called for the US Legislation to allow users to earn interest on Stablecoins. The US-based crypto Exchange founder believes introducing Onchain interest is a win-win for all stakeholders.
Armstrong shared his thoughts on the Matter on his X page, highlighting the milestones achieved by the Stablecoin industry and giving a prep talk on the asset class for newbies.
“ U.S. stablecoin legislation should allow consumers to earn interest on stablecoins. The government shouldn’t put its thumb on the scale to benefit one industry over another. Banks and crypto companies alike should both be allowed to, and incentivized to, share interest with consumers. This is consistent with a free market approach.” The Ceo said.
He further addressed his point with three reasons why interest in stablecoins is a solid win for everyone involved and the US economy.
A Win for US Consumers
Brian Armstrong postulated that on-chain interest in Stablecoins is a win for US consumers because they are the ones who are getting hurt the most without it. He explained that US consumers are losing about 2.5% of their purchasing power to middlemen.
Read More: Coinbase CLO Criticizes U.S. Treasury Over Tornado Cash Court Ruling Dispute
He believes Onchain interest will solve this problem by democratising access to the market rate yield rate, giving regular people a fair shot at maintaining and growing their wealth.
Billions of People to Benefit Over the Globe
Armstrong’s second argument is that people outside the US will benefit from stablecoins yielding interest. He argues that people in countries with volatile local currencies that lose value every day could benefit from such an initiative.
He believes interest-earning USD stablecoins can onboard people to an instant, transparent, and global financial system; they only need a simple internet connection.
A Win for the US Economy
Finally, Brian Armstrong said that Stablecoins are highly beneficial to US Treasuries, which is healthy for the US Economy. More yield in consumers’ hands means more spending, saving, and investing, fueling economic growth in all local economies where stablecoins are held.
Armstrong believes the American crypto industry already has the technology to implement Onchain interest for stablecoins. The hitch comes from the country’s rules and regulations, which should be changed.
Coinbase is an American-based crypto exchange that dominates the US crypto market. It faces competition from Binance US and other exchanges competing for users in this lucrative market.
