{"id":92810,"date":"2025-12-31T11:22:26","date_gmt":"2025-12-31T08:22:26","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=92810"},"modified":"2025-12-31T11:25:12","modified_gmt":"2025-12-31T08:25:12","slug":"coinbase-warns-of-chinas-potential-victory-in-digital-currency-race","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/coinbase-warns-of-chinas-potential-victory-in-digital-currency-race\/","title":{"rendered":"Coinbase Warns of China&#8217;s Potential Victory in Digital Currency Race"},"content":{"rendered":"<p>The United States may lose out to China due to stringent regulations on <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">stablecoins<\/a>, according to Coinbase representative Faryar Shirzad.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">For those who misunderstand what\u2019s at stake in the debate on offering rewards on US-issued stablecoins under the GENIUS Act, a sobering and timely announcement from the People\u2019s Bank of China that they plan to pay interest on the Digital Yuan. \ud83c\udde8\ud83c\uddf3\ud83c\udde8\ud83c\uddf3<\/p>\n<p>Tokenization is the future and\u2026 <a href=\"https:\/\/t.co\/stg8ffKzT7\">pic.twitter.com\/stg8ffKzT7<\/a><\/p>\n<p>\u2014 Faryar Shirzad \ud83d\udee1\ufe0f (@faryarshirzad) <a href=\"https:\/\/twitter.com\/faryarshirzad\/status\/2006056639049191915?ref_src=twsrc%5Etfw\">December 30, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>He pointed out the danger of limiting the yield on American assets. In his view, this gives an advantage to Beijing, which is implementing a mechanism for paying interest to users of the digital yuan (<a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-central-bank-digital-currency-cbdc\">CBDC<\/a>).<\/p>\n<p>Debates continue in the US over the <a href=\"https:\/\/forklog.com\/en\/news\/donald-trump-enacts-stablecoin-legislation\">GENIUS Act<\/a>. The legislation prohibits stablecoin issuers from paying interest to asset holders, and current discussions focus on the strictness of enforcing this rule.<\/p>\n<p>The situation is heating up amid news from China. The People&#8217;s Bank of China <a href=\"https:\/\/mp.weixin.qq.com\/s\/9WbwnKpZbtY-OGu1Vu6YEA\">announced<\/a> that from January 1, 2026, commercial banks will be able to pay interest on digital yuan (e-CNY) deposits. Effectively, the regulator is transitioning e-CNY from the category of &#8220;digital cash&#8221; to a full-fledged savings asset.<\/p>\n<p>Shirzad views this as a worrying signal. He believes that misguided Senate policies will benefit foreign CBDCs and non-American stablecoins.<\/p>\n<p>The Coinbase executive emphasized that <a href=\"https:\/\/forklog.com\/en\/news\/what-are-tokenised-assets\">tokenization<\/a> is the future, and US-jurisdiction stablecoins should remain a primary settlement tool. He urged lawmakers to protect the primacy of the dollar, rather than the interests of &#8220;entrenched players.&#8221;<\/p>\n<p>Opinions in the US are divided. The Blockchain Association and over 125 companies <a href=\"https:\/\/theblockchainassociation.org\/blockchainassociation-leads-industry-coalition-urging-congress-to-preserve-genius-act-stablecoin-framework\/\">are asking<\/a> Congress not to ban yields. They argue that restrictions will weaken the competitiveness of US assets.<\/p>\n<p>Meanwhile, the American Bankers Association <a href=\"https:\/\/www.aba.com\/advocacy\/policy-analysis\/Joint-State-Letter-Stablecoin-Rewards\">insists<\/a> on strict limitations. Traditional financial institutions fear that exchanges will find loopholes for hidden payments and attract clients away.<\/p>\n<p>Back in November, the PBOC <a href=\"https:\/\/forklog.com\/en\/news\/china-reaffirms-cryptocurrencys-illegal-status\">confirmed<\/a> its stance on the illegal status of digital assets in the country and highlighted the risks associated with using stablecoins.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The United States may lose out to China due to stringent regulations on stablecoins, according to Coinbase representative Faryar Shirzad.<\/p>\n","protected":false},"author":1,"featured_media":92811,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"US may lose to China due to strict stablecoin regulations, warns Coinbase's Shirzad.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[133,138,2265,1138,807,26],"class_list":["post-92810","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-china","tag-coinbase","tag-competition","tag-opinions","tag-stablecoins","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"222","promo_type":"1","layout_type":"1","short_excerpt":"US may lose to China due to strict stablecoin regulations, warns Coinbase's Shirzad.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=92810"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92810\/revisions"}],"predecessor-version":[{"id":92812,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92810\/revisions\/92812"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/92811"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=92810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=92810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=92810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}