Brian Armstrong CEO of Coinbase has presented powerful reasoning to congressional officials to back stablecoin legislation which allows interested-bearing trackers for digital dollars saying this innovation will build financial access.
The Interest Gap Challenge
The current financial system maintains a large difference according to Armstrong since the Federal Funds rate stood at 4.75% in 2024 yet savings accounts commonly provided under 0.5% interest to their users. Regular Americans suffered a true decrease in buying power because inflation reached 3% at that time.
Onchain Interest Solution
The CEO suggested using “onchain interest” which would let stablecoin owners receive yield from US Treasury reserve investments. Such an approach would create equal opportunities for obtaining market-rate yield rates so that any individual could preserve and expand their financial assets.
Global Financial Inclusion
According to Armstrong the implementation of interest-bearing stablecoins presents substantial worldwide benefits for persons in underdeveloped banking sectors. Through digital assets users can obtain instant US dollar access along with its stability by using their internet connection thus eliminating both frequent branch visits and exorbitant fees.
Economic Strategic Advantage
The majority of stablecoin providers have established themselves as leading purchasers of US Treasuries. Armstrong proposed that enabling interest levels on stablecoins would create worldwide adoption multiplefold while boosting Treasury purchases and maintaining dollar hegemony with enhanced economic functioning due to spending and investment growth.
Regulatory Call to Action
Armstrong presented an urgent appeal to Congress for immediate action because regulatory delays would make the US lose opportunities for trillions in worldwide financial movement. He sought federal legislation which would allow regulated issuers to generate onchain interest while preventing their operations from falling under redundant securities laws.
Financial Inclusion
The combination of pro-crypto leadership from both administration and Congress working on stablecoin governance presents Armstrong with a chance to update financial systems for consumer success rather than defend old frameworks focused primarily on benefiting financial middlemen.
