Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The founder of SkyBridge Capital, former White House communications director Anthony Scaramucci, suggested that a ban on the payment of rewards to stablecoin holders would greatly weaken American banks and the competitiveness of the US dollar.
The businessman claims that the ban on paying interest on the ownership of stablecoins, prescribed in the law on regulating the issue and circulation of stablecoins GENIUS, is intended not so much to ensure the financial stability of the country, but to protect bankers from competition with issuers of stablecoins. According to Scaramucci, traditional banks are resistant to crypto companies because if the tokens generate income, people may stop making bank deposits and start moving funds to crypto exchanges and other platforms that pay rewards.
Related Posts
The founder of SkyBridge Capital fears that this will worsen the problems of the US financial system, which risks losing leadership to competing alternative solutions, for example, from China. Scaramucci mentioned the People’s Bank of China (PBOC) digital yuan. From January 1, Chinese commercial banks are allowed to pay interest to owners of digital yuan wallets.
“The whole system is broken: banks don’t want competition with issuers of stable digital coins, so they block the payment of yield on stablecoins, while the Chinese provide it. What kind of monetary system do you think developing countries will choose—with or without ? yield,” Scaramucci asked.
Recently, similar concerns were expressed by the CEO of the American crypto exchange Coinbase, Brian Armstrong. He is confident that rewards for owning stablecoins will not have a significant impact on the work of banks and the credit market.
