Coinbase Warns Senate About China’s Digital Yuan Strategy as US Regulatory Debate Continues
China is advancing its digital currency strategy with plans to offer interest-bearing digital yuan wallets starting January 2026, marking a transition from digital cash to digital deposit money according to Vice Governor Lu Lei. This long-term approach contrasts with the ongoing regulatory debates in Washington.
Coinbase has raised concerns that the US risks falling behind in digital currency innovation, particularly if the GENIUS Act is weakened. The crypto exchange warns that while America debates rules, China is methodically executing its digital currency plans.
The banking sector's push to ban stablecoin rewards highlights the tension between traditional finance and crypto innovation. This clash underscores the broader competition between established financial systems and emerging digital asset technologies.
