China Pays Interest on Digital Yuan, Coinbase CEO Warns U.S. Is Falling Behind

• Armstrong warns stablecoin reward bans could hurt U.S. payment competitiveness.
• China will pay interest on digital yuan starting January 2026.
• Crypto users say China’s move pressures U.S. regulators to act.

Coinbase chief executive Brian Armstrong has warned that blocking rewards on stablecoins could put the United States at a disadvantage just as other countries move faster to modernize their payment systems.

Armstrong pointed to China’s recent decision to pay interest on its own digital currency, saying it shows how governments are using incentives to encourage adoption. He said China views interest on digital money as a competitive advantage that benefits ordinary people, and warned that the U.S. risks falling behind if it takes the opposite approach.

For the unversed, China has made a simple but important change to its digital currency. From January 1, 2…

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