Starting from January 1, 2026, which is today, China's digital yuan officially allows holders to earn interest. Meanwhile, the U.S. Genius Act explicitly prohibits stablecoin issuers from paying interest to holders, leading platforms like Coinbase to engage in lawsuits with a bunch of banks. As a result, many people are celebrating, saying we've taken the lead again. In fact, if you combine this with the tweet I posted yesterday, you'll understand why the U.S. doesn't allow stablecoins to pay interest, but we allow the digital yuan to pay interest. Last month, in the 'Action Plan for Further Strengthening the Management Service System and Related Financial Infrastructure Construction of the Digital Yuan,' it was clearly stated that the digital yuan would transition from a cash currency model (version 1.0) to a deposit currency model (version 2.9). This shift directly defines the balance of the digital yuan as a liability of commercial banks, meaning that in legal terms, it is of the same nature as real fiat currency deposits. In countries like China, the U.S., and other major nations, deposit ownership belongs to the banks, while depositors only hold creditor rights. Naturally, banks can then pay interest on digital yuan balances. However, the Genius Act is the first regulatory framework in the U.S. for payment-based stablecoins, which, like our previous definition of the digital yuan, are categorized as payment-based rather than savings-based. There are two reasons why payment-based currencies are not allowed to pay interest. First, as I mentioned yesterday, only when ownership of funds is fully transferred, making you a creditor, can banks or other third parties legally turn your money into their money, use it for other purposes, and ultimately pay you interest legally. So, if your funds can only be used for payments and not savings, ownership remains with you, and legally, no third party has the right to 'utilize' your funds to pay interest. Before this, the interest-free digital yuan version 1.0 and current stablecoins were, in legal terms, funds whose ownership remained with the individual. The second reason is actually more critical. If there were a type of money that could earn interest equal to or even higher than banks without transferring ownership, then no one would deposit their money in banks anymore. The Genius Act's prohibition on stablecoins paying interest is essentially a compromise by Trump's Republican Party to the Democrats, as the banking industry is a major supporter of the Democratic Party. Even if Trump wanted to support cryptocurrencies, he wouldn't dare to completely offend the Democrats by antagonizing the entire banking industry. So, the prohibition on stablecoins paying interest is a direct conflict of interest between traditional banking and cryptocurrency. Why don't we have this conflict? Because, as mentioned above, under the latest announced regulations, digital yuan 2.0 is classified as bank deposits, sacrificing ownership in exchange for interest income.