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U.S. Stablecoin Debate Intensifies Amid China’s Digital Yuan Push

U.S. Stablecoin Debate Intensifies Amid China’s Digital Yuan Push

Published:
2025-12-31 06:55:02
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BTCCSquare news:

The U.S. regulatory stance on stablecoins is sparking geopolitical tensions as China advances its digital yuan strategy. Coinbase executives warn that the GENIUS Act's prohibition on interest-bearing stablecoins could erode the dollar's dominance in digital finance. Meanwhile, Beijing's decision to allow interest payments on e-CNY balances marks a strategic pivot from digital cash to deposit-like instruments.

China's central bank will permit commercial banks to pay interest on digital yuan holdings starting in 2026, potentially creating a competitive advantage against U.S. stablecoin projects. This development coincides with growing industry concerns about America's ability to maintain leadership in the blockchain-based financial infrastructure race.

|Square

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