Coinbase CEO Brian Armstrong Advocates for Onchain Interest in Stablecoins
In a recent post on Twitter, Brian Armstrong, CEO of Coinbase, emphasized the importance of unlocking onchain interest for stablecoins, calling it a win-win for U.S. consumers, the global economy, and dollar dominance. Armstrong argued that stablecoin legislation should empower both banks and crypto companies to share interest earned on reserve assets directly with consumers, fostering a free market approach.
Armstrong’s tweet highlighted:
“U.S. stablecoin legislation should allow consumers to earn interest on stablecoins. The government shouldn’t put its thumb on the scale to benefit one industry over another. Banks and crypto companies alike should both be allowed to, and incentivized to, share interest with consumers.”[1]
Key Points from Armstrong’s Advocacy:
- Consumer Benefits: Onchain interest democratizes access to market yield rates, allowing regular people to earn 4%+ interest directly through stablecoins instead of the meager 0.01% offered by traditional savings accounts.
- Global Financial Inclusion: Billions of underbanked individuals worldwide could access interest-earning USD stablecoins, bypassing volatile local currencies and excessive fees with just an internet connection.
- Economic Growth: Stablecoins already hold significant amounts of U.S. treasuries and could further extend dollar dominance globally while fueling local economies through increased consumer spending and saving.
Armstrong also noted that outdated securities laws currently prevent stablecoins from functioning as interest-bearing accounts, urging Congress to enact legislation that levels the playing field for regulated stablecoin issuers.
With a pro-crypto administration and active congressional efforts on new stablecoin laws, Armstrong sees this as a pivotal moment to modernize financial systems and unlock trillions in potential economic benefits.
Follow Brian Armstrong’s full statement on Twitter: @brian_armstrong.