Agora CEO: "Yield stablecoins" are not currencies or stablecoins

Nick van Eck, CEO of stablecoin distribution company Agora, believes that stablecoin issuers that provide passive income to holders are neglecting the core mission of stablecoins. These companies should focus on utility, liquidity, and the means of trading to benefit as many individuals and businesses as possible.
Interest-bearing stablecoins offer a new dimension for DeFi users looking to earn interest, but vanEck says such products may be classified as securities in many countries, thus limiting the customer range. This robs you not only of your customers, but also of your liquidity providers, suppliers, and higher utility caps. Your products cannot be freely traded. Regulated financial services firms outside the United States are unlikely to use your product because it poses risks without providing adequate returns.