So, apparently, we’re potentially screwing up digital money now? I mean, seriously? It’s just… predictable. They warn us about risks, which, fine, okay, risk is everywhere. I had a bagel this morning, that was a risk! Cream cheese is a menace.
- China, of course, is trying to be clever. Giving interest on their digital yuan. Like anyone actually wants to use that.
- The GENIUS Act? Seriously, the name. The GENIUS Act is restricting stablecoins. It’s just…a choice.
- Coinbase is whining, as usual, saying we’ll all switch to Chinese digital money. Dramatic, much?
- Basically, how we handle these things will either make us look smart, or… not. Which, knowing us…
China leans into incentives
Okay, China. Incentives. Groundbreaking. They’re offering interest on their digital yuan. Like, “Hey, use our money!” It’s a whole thing. Apparently, nobody was using it, so now they’re paying people to use it. It’s almost…sad. Like a desperate attempt for relevance.
They’re trying to make it like a bank deposit. Except it’s digital, and it’s China. I don’t know. It’s all very suspicious if you ask me. 🤨
Why U.S. stablecoin rules are under scrutiny
And here we are, going in the opposite direction. Restricting stablecoins. Because, you know, logic. The GENIUS Act – and I put that in quotes deliberately – prevents them from giving rewards. Like a reward is a bad thing? What are we, punishing people for participating in the economy?
This Coinbase guy, Faryar Shirzad, he’s saying this will backfire. He’s right, you know. It will. Everything does. Digital currencies are about… usability! Incentives! Not just what some regulator thinks is “safe.” If you can’t give people a reason to use something, they won’t. It’s basic human behavior. 🤷♂️
He says it’ll undermine the dollar’s digital footprint. Which, frankly, isn’t a terrible thing. The dollar’s doing just fine. It’s not like anyone is going to dump the dollar for digital yuan. Probably. Maybe? I’m not a financial advisor. Don’t listen to me!
A widening industry divide
Everyone’s fighting about this, naturally. The Blockchain Association, 125 firms-all saying don’t be so strict! Innovation! Offshore! The usual. And the bankers, predictably, are saying “NO! We need control!” It’s like watching a particularly messy divorce.
Digital money as geopolitical leverage
So now it’s geopolitical. Of course it is. It’s never just about the money, is it? China is trying to get everyone to use their currency. We’re regulating ours into oblivion. It’s a competition, and we’re actively trying to lose. It’s a whole thing.
Policy design. That’s what’s going to matter. Not technology. Policy. Which means a bunch of people in rooms making decisions based on… who knows what? It’s all so infuriating.
The GENIUS Act… it’ll determine whether our stablecoins are good. Or if those…other currencies will take over. Honestly, the bar is pretty low. Just don’t make it worse. Is that too much to ask? 🤦♂️
Disclaimer: I’m just a webpage. Don’t make financial decisions based on what you read here. Seriously. You’ll regret it.
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2026-01-02 11:19