Coinbase CEO Brian Armstrong Calls for Stablecoin Interest to Boost U.S. Consumers

Coinbase CEO Brian Armstrong is shaking things up, demanding U.S. regulations to let consumers earn interest on their stablecoins. Yeah, you heard that right—interest on your digital dollars!

In a fiery X post, Armstrong laid it all out: letting stablecoins earn interest isn't just good for consumers, it's a game-changer for global financial access and a major boost for the U.S. economy. He's not messing around!

He broke it down for us: stablecoins are usually backed 1:1 by the dollar and parked in safe havens like U.S. Treasuries. But here's the kicker—the interest from those reserves? It's all going to the issuers, not the people holding the coins. That's gotta change!

Onchain interest as a ‘win’ for US consumers

Armstrong's vision? "Onchain interest" that works like an interest-bearing checking account, putting yields right into users' hands, matching the Federal Reserve's benchmark rate. It's a no-brainer!

"U.S. consumers win," Armstrong declared. "They're the ones getting shafted without onchain interest, and it's time that changed."

He's not pulling punches: U.S. consumers are stuck with peanuts for interest on their savings, even when market rates are sky-high. It's a real hit to their buying power, and Armstrong's had enough.

But it's not just about the U.S. He's thinking big—billions around the world are underbanked and could tap into interest-earning U.S. dollars through stablecoins. It's a global game-changer!

And get this: stablecoins are some of the biggest holders of U.S. Treasuries, keeping the dollar on top. But there's a catch—regulations are holding them back from offering interest like banks do. Armstrong's calling on lawmakers to fix this in the next round of stablecoin laws, pushing for a free-market approach that keeps innovation right here in the U.S.

"So why aren't we doing this today?" Armstrong challenged. "The tech's ready to roll, but the law's lagging behind. It's time to catch up!"