China does not need to attack to win. No missiles, no threats: just a long-term digital strategy. She moves forward, quietly, methodically. And in the chambers of the American Senate, the pressure is mounting. An alert displays, but it does not flash. It is Coinbase which is sounding the alarm, because while Washington is debating rules, Beijing is transforming its currency. Perhaps it’s time to read between the lines… and listen to what the crypto industry is whispering out loud.
In brief
- China will offer interest on its digital yuan from January 2026, a formidable strategy.
- Coinbase fears that the United States will lose ground if the GENIUS Act is weakened.
- Banks want to ban stablecoin rewards, citing stability but above all defending their margins.
- The debate highlights the clash between crypto innovation and the inertia of the traditional financial system.
China: a digital yuan with interest from 2026
China is playing a double whammy. From January 2026, e-CNY digital wallets will earn interest. A discreet but strategic innovation. Vice Governor Lu Lei says:
The digital yuan will move from the era of digital cash to that of digital deposit currency. It will fulfill the functions of unit of account, store of value and cross-border payment.
This shift propels China to the front of the CBDC pack. Meanwhile, in the United States, the Senate is debating the possibility of offering “rewards” to stablecoin users.
Faryar Shirzad at Coinbase warns on X: “ If this issue is mishandled during Senate negotiations on the market structure bill, it could provide our global rivals with valuable assistance by giving non-U.S. central bank stablecoins and digital currencies a decisive competitive advantage, at the worst possible time “.
The crypto community fears that American stablecoins will become obsolete before they even become widespread. Offering incentives is not incidental: it has become a tool of monetary sovereignty.
The silent battle: banks versus crypto
The GENIUS Act seemed to have calmed things down. It prohibits stablecoin issuers from paying interest, but allows platforms to offer rewards. Everyone shook hands. And yet…
Banking lobbies now want to reopen the text. Max Avery says it without filter:
Concretely, here's what happens: your bank takes your deposit, places it with the Federal Reserve, collects more than 4% interest… and gives you almost nothing. A stablecoin platform wants to share some yield with you, and suddenly that would be a threat to financial stability?
Coinbase does not intend to let it happen. For Brian Armstrong, any attempt to reopen the GENIUS Act would cross a red line. According to him, banks do not seek to protect consumers, but to preserve their income, at all costs.
The stablecoin USDC becomes the standard of an ecosystem that no longer wants to be restricted. Behind the technical terms, it is a standoff over the sovereignty of digital currencies. And in this game, legislative inaction can be costly.
Crypto: America risks losing control
Beyond the United States, eyes are on the Senate. Fintechs, investors, developers observe: will American rules promote innovation or strangle it? If pressure from the banks wins, why choose America?
Faryar Shirzad sums up the issue: “ tokenization is the future “. However, if the United States restricts its own stablecoin champions, its entire digital leadership falters.
China is moving forward: it pays, it deploys, it globalizes. It offers paid digital yuan where the West still doubts the use of stablecoins.
What if tomorrow, the dollar lost its reference role? It is no longer a fantasy, but a strategic question.
What the numbers say: an ongoing currency war
• China will pay for e-CNY from January 1, 2026;
• US banks receive 4.4% from the Fed;
• American savers receive 0.01% on average;
• The global stablecoin market exceeds $130 billion.
Beijing does not stop there. On a completely different front, she is now demanding an immediate end to American arms sales to Taiwan. When it comes to sovereignty, China doesn't blink an eye. The crypto sphere would do well to remember this: sometimes, power does not shout. He moves forward.
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