Coinbase warns that China may outpace the United States in the digital currency race as Beijing advances its CBDC program. US may lose to China due to strict stablecoin regulations, warns Coinbase’s Faryar Shirzad. The People’s Bank of China announced that from January 1, 2026, commercial banks will be able to pay interest on digital yuan deposits, signaling a shift toward treating the e-CNY as a savings asset.
Shirzad argues this shift highlights the risk of restricting yields on American assets, potentially giving Beijing an advantage. He says tokenization 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 entrenched players.
US policy debates continue. The Blockchain Association and more than 125 companies urge Congress not to ban yields, while the American Bankers Association calls for strict limitations. Previously, the PBOC reaffirmed its stance on the illegality of digital assets and warned about the risks of stablecoins.
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