Analysis: Stablecoins should be banned from paying interest, otherwise it will harm efficiency and stability

scholars such as Hans Gerlsbach from the Swiss Federal Institute of Technology in Zurich (ETH) Economic Research Institute (KOF) stated at the World Economists Conference (ESWC) opened on the 18th with the theme "Stable Coin with Infectiousness?" when giving a speech: "In an environment where multiple issuers compete, if one issuer starts paying interest, other issuers cannot help but follow suit. This will lead to inefficiency and instability in the overall (stable coin) system." They added: "The interest payment mechanism of this stable coin is infectious and may ultimately lead to a series of problems. Therefore, prohibiting interest payments through regulation is a core measure to maintain an efficient stable coin market." Scholars also pointed out that in the so-called "stable coin secondary market," if investors do not redeem directly from the issuer but circulate through market trading, a failed adjustment could also trigger panic, so regulation is equally necessary.