- Armstrong greeted revenue-bearing stablecoins as a ‘win-win’.
- Senator Gillibrand was worried that Stablecoin Rewards could kill banks.
Coinbase CEO Brian Armstrong made critics of proceeds stablecoins Sparks sparks between crypto and traditional bank supporters as continuous legislation.
In an X (formerly Twitter) after On March 31, Armstrong stated that the ‘Onchain interest rate is a win-win’ for the US, Global Stablecoin users and the US government through an increased demand for treasury accounts.
“The American Stablecoin legislation should enable consumers to earn interest on stablecoins. Banks and crypto companies must be allowed and encouraged to share interest with consumers. This is consistent with a free market approach.”
Here Armstrong referred to two Stablecoin accounts – the genius and stable actions.
His criticism, however, was aimed at recent comments from the US Senator Kirsten Gillibrand, the co-sponsor of Genie (supervising and determining national innovation for the US Stablecoins) act.
Stablecoin versus banks
During a DC Blockchain -Top last week, Gillibrand stated”
“Do you want a Stablecoin -emittent interest to spend interest, probably not, because if they spend interest, there is no reason to place your money in a local bank. If there is no reason to place your money in a local bank that will give you a mortgage?”
Some Marktwijkers saw its comments as the protection of banks at the expense of Stablecoin users.
Armstrong, however, criticized banks for making interest rates in pocket instead of sharing them with users.
“The average FED fund rate rate/market yield trot in 2024 was 4.75%, and the average return of the consumer saving account was 0.41% (often 0.01%). With inflation at ~ 3% last year, this means that consumers had a real loss in the purchasing power of 2.5% as a result of midlemen.”
He added that consumers could earn +4% direct interest rate via stablecoins instead of saving bills by 0.01%.
Bitgo CEO Mike Belshe reflected the comments of Armstrong and stated”
“This is the #1 that America could do to increase the global acceptance of USD. The only guys who don’t like it are the fractional reserve banks that only pay 0.2% interest!”
For his part, Mat Hougan, CEO of Digital Asset Manager Bitwise, has the protection of Banks of Gillibrand against the costs of average Americans. He begged,
“Rich individuals already have ways to sign up for the zero-interest cartel via money market funds and interest charges with a high balance. Could it not be nice if every American could easily have access to a way to collect interest on their money?”
The Genius Act was introduced in the Senate and was claimed on 13 March for a wider senate floor voice. The stable law, a similar bill of the American House of Representatives, was planned for sedition on April 2.
It remains uncertain whether pro-Crypto legislators will gather to update the bills to allow returns-bearing stabilecoins.
That said, the stablecoin sector has won momentum From cross -border payment players and the US government.
