How do Coinbase and PayPal continue to offer Stablecoins’ rewards despite a ban on a brilliant law?
The Stablecoin market reappears after the regulatory framework of the brilliant law in the United States. A text that actually excludes options with integrated returns, but which apparently does not prevent Coinbase and Paypal to continue to reward their holders. How is it possible?
Stablecoins with yield: The Regulatory Act says no
It is difficult to ignore the shift of the paradigm initiated by the cryptocurrency sector after the recent adoption of the regulatory framework brilliant law in the United States. More precisely, the revolution applies to Stabbenecins, now presumed as leading cash on the market estimated at $ 2,000 billion in the coming years.
The regulatory opening, which is still accompanied by several strategic closures, which were founded by elected officials who touched that these digital currencies did not apply too much to their traditional competitors. The main example is undoubtedly the controversial object of stablecoin with the possibility of returning.
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In fact, this category was quickly considered too much motivation for a tool for use as payments. A way to make a difference with more clearly intended for investment, such as conventional cryptocurrencies.
However, leading actors like Coinbase or PayPal continue to offer very attractive awards registered between 3.7 % and 4.7 %. The selection very clearly claimed their managers when they published their quarterly results. How is it possible to regulate?
Coinbase: Sign up on the most famous cryptocurrency in the world
Vs. Publisher
During this event, the question was opened by a shareholder in the Cryptococurrency Exchange platform on Coinbase cryptocurrencies. And what says that the latter response is due to the clarification of the conditions to be used in the field.
There is a ban on a stable -Co -eemter law on the brilliant law Act, which applies interest and income. We are not a transmitter first. And secondly, we do not pay interest on return, we offer rewards.
🗞 Boom in Stablecoins shakes the domination of Visa and MasterCard payment giants
In fact, Coinbase does not cause Stablecoin, despite its relatively close connection with the USDC. The difference that allows him to pay rewards – recently increased to 4.7 % – their holders when they decide to put them on their platform. On the other hand, Circle, the official issuer of Stablecoin USDC, cannot offer this type of service.
The identical situation for Stablecoin Pyusd of PayPal, published by the third company called Paxos whose annual return – should we also talk about reward? – is currently set at 3.7 %. According to its CEO James, Alexander Chriss is very clear to attract new customers.
According to Brian Armstrong, this motivational strategy will remain one of the options preferred by its exchange, because “this is one of the main reasons why people come to store their funds on Coinbase”.
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Source: Decrypt
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Passionate for cryptocurrencies and the principle of decentralization for many years I want to share this experience with the greatest number. I also focus on decrypting problems associated with the development of this ecosystem in traditional financing.
Hugh Bernard
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