Coinbase executive warns that US stablecoin policies could give China an edge in global payments competition

Breaking News from Mars Finance: Coinbase Chief Policy Officer Faryar Shirzad recently stated on social media that amendments to the GENIUS Act in the U.S. Congress could weaken the competitiveness of USD stablecoins in the global payments sector, while China is enhancing its appeal through the interest payment feature of the Digital Renminbi. The People’s Bank of China announced this week that starting January 1, 2026, commercial banks will be allowed to pay interest on digital renminbi wallet balances. Vice Governor of the PBOC Lu Lei said this move will transition digital renminbi from the “digital cash” era to the “digital deposit currency” era, further expanding its functions for value storage and cross-border payments. The GENIUS Act, passed in June this year, established reserve and compliance rules for stablecoins but prohibits issuers from paying direct interest, allowing only platforms and third parties to offer rewards linked to stablecoin usage. Shirzad warned that if the Senate mishandles negotiations on the Market Structure Bill, it could give countries like China a competitive advantage. Coinbase CEO Brian Armstrong last week stated that any attempt to re-amend the GENIUS Act is a “red line,” accusing banking lobbyists of pressuring Congress to restrict stablecoin rewards to protect their deposit base. He believes the banking sector’s judgment on this issue is flawed and predicts that banks will ultimately compete to offer interest and yields on stablecoins. Previously, Lu Lei mentioned that the “Action Plan” implemented from January 1, 2026, clearly states that digital renminbi wallet balances can accrue interest.