It looks like the U.S. Congress fumbling the crypto ball right into China’s end zone.
That’s the wild warning from Coinbase’s top policy gunslinger, Faryar Shirzad, who’s eyeballing lawmakers like they’re about to gift-wrap the future of money to Beijing.
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America slaps a ban on interest for stablecoins, while China rolls out the red carpet with yields on its digital yuan. Boom, sudden death for U.S. dollar dominance.
Handing rivals a rocket ship
Shirzad didn’t mince words in his Senate showdown over the GENIUS Act, that Trump-era brainchild aiming to crown U.S. stablecoins as the world’s go-to settlement tool.
Tokenization? That’s the glittering prize, the mad alchemy turning boring assets into digital gold.
Screw up rewards on these bad boys, and you’re handing rivals like China a rocket ship while U.S. issuers pedal rusty bikes.
Cut to China, where the People’s Bank of China just dropped a bombshell. Starting January 1, 2026, commercial banks can pay interest on e-CNY holdings.
Deputy Governor Lu Lei spilled the tea, after a half decade of pilot programs since 2019, the digital yuan evolves from a sluggish digital note into a full-blown digital deposit beast.
“We’ve built a preliminary ecosystem with Chinese characteristics, central bank-led.”
Cross-border supremacy
Adoption’s been bumpy, sure, but the numbers don’t lie. Experts reported that by November’s end, e-CNY racked up 3.48 billion transactions.
Cross-border? The mBridge platform alone handled 4,000 payments worth $55 billion, with digital currencies dominating 95% of the action.
Lei’s vision is simple, a hybrid monster blending blockchain and account-based wizardry, perfect for tokenization in issuance, circulation, and payments.
It’s eyeing cross-border supremacy, a reliable store of value that laughs at traditional fiat’s creaky joints.
China’s e-CNY interest rollout is a checkmate move
Yet here’s the savage twist, China knows the razor edge they’re dancing on.
Lei hammered home the risks:,juggling central bank liabilities with commercial bank duties, balancing centralized control against blockchain’s decentralization.
Get it wrong, and customer rights crumble under regulatory boots. It’s a high-stakes game where one bad bluff could torch the whole table.
Shirzad’s plea rings like a saloon warning, don’t let U.S. stablecoin bans turn the dollar’s throne into a folding chair.
China’s e-CNY interest rollout is a checkmate move in the global CBDC wars. Lawmakers, wake up before the dragon eats your lunch.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: January 2, 2026 • 🕓 Last updated: January 2, 2026
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