Congress must bar interest on payment stablecoins to avoid harming Main Street lending

The article discusses the significant risks associated with allowing crypto exchanges and intermediaries to offer yield-like incentives on payment stablecoins. Kevin Paintner, chairman of the Independent Community Bankers of America's Digital Assets Subcommittee, warns that this could negatively impact local economies, as it may lead consumers to favor these financial products over traditional banking options, ultimately undermining the role of local banks in providing necessary loans to individuals and small businesses. This transition could jeopardize the stability of local economies, with widespread implications for those relying on these financial institutions for reliable funding. Therefore, Paintner emphasizes the need for Congress to take action to prohibit interest on stablecoins to safeguard the integrity of local economic structures.