Reported 1 day ago
As global regulators aim to impose strict guidelines on stablecoins, including a ban on interest payments, the practicality of enforcing such a prohibition raises concerns. While aimed at maintaining liquidity within traditional banking, many crypto exchanges offer rewards that mimic interest rates, and users can easily shift their stablecoin assets to yield-bearing DeFi protocols. The increasing transactions in decentralized finance suggest that as the blockchain ecosystem evolves, limiting interest payments on stablecoins might not only be impractical but could also lead to significant market shifts, echoing historical challenges in the banking sector regarding interest regulations.
Source: YAHOO