Tuesday, January 27, 2026

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Medicaid Issued WHOPPING $1.1 TRILLION in Improper Payments.

The federal government’s Centers for Medicare and Medicaid Services (CMS) has issued an estimated $1.1 trillion in improper payments over the last decade, according to a new outside analysis. While CMS’s internal audits suggest at least $543 billion in improper payments over a decade, the Paragon Health Institute—an independent and nonpartisan healthcare think tank—says its research reveals the fraudulent payments are over double what the government reports.

According to researchers with the Paragon Health Institute, CMS data excludes eligibility checks, which produces a lower, inaccurate cost for fraudulent payments. The researchers note that CMS’s Payment Error Rate Measurement (PERM) audits under both the Obama and Biden governments excluded analysis of state eligibility determinations resulting in an inaccurate estimation of improper payments.

However, according to the Paragon Health Institute researchers, state eligibility determinations represent a critical point where fraud occurs. Under Obamacare, numerous states expanded their Medicaid programs resulting in a wider pool of eligible individuals and higher government reimbursements. The researchers contend this created “an incentive for states to improperly classify traditional enrollees, as well as ineligible applicants, as expansion enrollees.”

In addition to eligibility checks, the Paragon Health Institute notes that Medicaid’s presumptive eligibility rules—which allow hospitals to enroll patients in the government healthcare program based on stated income level and household size pending eventual review—represent another major avenue of fraud. According to the research, around 70 percent of individuals deemed eligible for Medicaid by hospital administrators are later determined to be ineligible.

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By Popular Demand.
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U.S. Base Security Undermined by Chinese Sham Marriages.

PULSE POINTS

WHAT HAPPENED: U.S. Navy sailors have been charged with conspiracy to commit marriage fraud in a scheme involving sham marriages with Chinese nationals, raising concerns over national security risks.

👤WHO WAS INVOLVED: Navy sailors Jacinth Bailey and Morgan Chambers, along with unnamed conspirators and Chinese nationals.

📍WHEN & WHERE: The scheme dates back to September 2024 and centers around the U.S. Naval Air Station in Jacksonville, Florida.

💬KEY QUOTE: “It’s a huge issue for the Navy. It involves the screening of personnel. It involves the training of personnel, it involves discipline, and you’ve seen recruitment, training, and discipline deteriorate in the Navy over recent years.” – J. Michael Waller, former CIA operative.

🎯IMPACT: The case highlights vulnerabilities in U.S. national security, especially concerning so-called green card marriages.

IN FULL

A federal case involving two U.S. Navy sailors accused of entering sham marriages with Chinese nationals has intensified concerns about national security vulnerabilities and foreign intelligence activity targeting the American military. Jacinth Bailey and Morgan Chambers, both stationed in Jacksonville, Florida, were charged with conspiracy to commit marriage fraud after allegedly accepting tens of thousands of dollars to marry Chinese nationals so they could obtain permanent residency in the United States.

According to court documents, Bailey, who was assigned to the USS Dwight D. Eisenhower, was offered $45,000 to participate in the scheme, while Chambers was allegedly offered $35,000. Prosecutors say the plan involved marrying the foreign national, helping them secure a green card, and later divorcing them.

Investigators allege the operation deliberately sought out U.S. service members because of their access to sensitive military facilities. Former Central Intelligence Agency (CIA) operative J. Michael Waller described the scheme as a “targeted intelligence recruitment and collection operation” designed to gain access to Naval Air Station Jacksonville through marriage-based base credentials. He warned that such access could pose serious risks to U.S. national security.

Waller also said the case reflects deeper structural issues within the Navy, stating, “It’s a huge issue for the Navy. It involves the screening of personnel. It involves the training of personnel, it involves discipline, and you’ve seen recruitment, training, and discipline deteriorate in the Navy over recent years. It’s only starting to come back.”

If convicted, Bailey and Chambers each face up to five years in federal prison. Their case comes amid a series of recent prosecutions highlighting Chinese espionage efforts against the United States. In 2025, for instance, a former Navy sailor was found guilty of spying for China after passing sensitive military information to Chinese intelligence handlers while holding a security clearance. That same year, a former State Department official was sentenced to four years in prison for providing classified national defense information to individuals linked to the Chinese government.

In another notable case, a former CIA officer was sentenced to ten years in federal prison after admitting he supplied classified intelligence to China over an extended period.

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Anti-ICE Activists Besiege Walz’s Office Over Dialogue With Trump, Homan.

PULSE POINTS

WHAT HAPPENED: Far-left activists gathered outside the office of Minnesota Governor Tim Walz (D) in the state capitol, protesting U.S. Immigration and Customs Enforcement (ICE) and other federal agencies.

👤WHO WAS INVOLVED: Tim Walz, White House Border Czar Tom Homan, President Donald J. Trump, and protesters.

📍WHEN & WHERE: Tuesday afternoon, Minnesota State Capitol building.

💬KEY QUOTE: “The Governor and Homan agreed on the need for an ongoing dialogue and will continue working toward those goals, which the President also agreed to yesterday.” – Governor Walz’s office

🎯IMPACT: Tensions remain high in Minnesota as Democrats and anti-ICE activists attempt to effectively veto federal immigration law.

IN FULL

Far-left protesters gathered outside Democrat Minnesota Governor Tim Walz’s office in the state Capitol on the afternoon of January 27, chanting “justice delayed, justice denied,” while holding signs reading “Justice for Alex Pretti” and “F*ck ICE.” The demonstration came hours after Walz met with White House Border Czar Tom Homan amid ongoing tensions over federal immigration enforcement activity in Minneapolis.

Walz’s office released a statement following the meeting, saying the governor “met with Tom Homan this morning and reiterated Minnesota’s priorities: impartial investigations into the Minneapolis shootings involving federal agents, a swift, significant reduction in the number of federal forces in Minnesota, and an end to the campaign of retribution against Minnesota.” The statement added, “The Governor and Homan agreed on the need for an ongoing dialogue and will continue working toward those goals, which the President also agreed to yesterday. The Governor tasked the Minnesota Department of Public Safety as the primary liaison to Homan to ensure these goals are met.”

The protests follow two fatal incidents in Minneapolis earlier this month involving anti-ICE activists. Renee Good was killed after ramming a federal officer with her vehicle, while Alex Pretti was shot and killed by Border Patrol during a scuffle.

Walz also spoke with President Donald J. Trump on Monday regarding the shootings and the federal presence in Minnesota. After the call, Walz wrote, “I had a productive call with President Trump earlier today. I told him we need impartial investigations of the Minneapolis shootings involving federal agents, and that we need to reduce the number of federal agents in Minnesota.”

He added that “The President agreed to look into reducing the number of federal agents in Minnesota and to talk to DHS about ensuring the Minnesota Bureau of Criminal Apprehension is able to conduct an independent investigation, as would ordinarily be the case.”

The Minnesota governor has drawn national attention in recent weeks over his involvement in a widespread Somali fraud scandal, his handling of the immigration protests, and his rhetoric against federal authorities. Walz has publicly acknowledged cooperating with Homan while simultaneously calling for limits on federal enforcement activity in the state. His administration has also faced scrutiny after Minnesota National Guard members were observed distributing coffee and donuts to anti-ICE activists.

Separately, Walz has asked supporters for financial contributions to help cover legal costs related to a Department of Justice (DOJ) subpoena over the fraud scandal, framing the request as necessary to challenge what he has described as federal overreach.

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State Schools’ H-1B Visa Petitions Frozen Amid Federal Investigation.

PULSE POINTS

WHAT HAPPENED: Governor Greg Abbott (R-TX) ordered a freeze on all new H-1B visa petitions by state agencies and universities amid a federal investigation into abuse.

👤WHO WAS INVOLVED: Gov. Abbott, the Texas Workforce Commission, and state universities.

📍WHEN & WHERE: The directive was issued on January 27, 2026, affecting the state of Texas.

💬KEY QUOTE: “Texans come first. I’m directing state agencies and universities to freeze new H-1B visa petitions.” – Greg Abbott

🎯IMPACT: Texas is the first state to implement a statewide freeze on H-1B visa petitions, impacting thousands of potential migrants and employers.

IN FULL

In a memo issued on Tuesday, January 27, 2026, Texas Governor Greg Abbott (R) instructed state agencies and publicly funded universities to immediately halt all H-1B visa petitions amid a federal investigation into abuse. Abbott stated that the Texas economy should be refocused to “the benefit of Texas workers and Texas employers.” Abbott’s directive makes Texas the first state to implement such a statewide freeze.

“No state agency controlled by a gubernatorially appointed head or public institution of higher education shall, without the written permission of the Texas Workforce Commission, initiate or file any new petition to sponsor a nonimmigrant worker under the federal H-1B visa program until the end of the Texas Legislature’s 90th Regular Session on May 31, 2027,” Gov. Abbott’s memo declares. He goes on to cite “recent reports of abuse” and the federal government’s “ongoing review” of the H-1B visa program as reasons for the decision.

The Texas governor further instructed all state agencies to submit a report to the Texas Workforce Commission by March 27, 2026, detailing the number of H-1B visa holders currently employed, their countries of origin, and documentation showing efforts to provide qualified Texans with opportunities to fill those positions. “Rather than serving its intended purpose of attracting the best and brightest individuals from around the world to our nation to fill truly specialized and unmet labor needs, the program has too often been used to fill jobs that otherwise could—and should—have been filled by Texans,” he admitted.

In a post on X (formerly Twitter), Gov. Abbott wrote, “Texans come first. I’m directing state agencies and universities to freeze new H-1B visa petitions. Texas taxpayers invest billions to train our workforce. Those jobs should go to Texans. Texas is the strongest economic engine in America. We’re going to keep it that way.”

Texas approved over 40,000 H-1B visa petitions in fiscal year 2025, ranking second in the nation behind only California.

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Court Delivers MAJOR Blow to Democrat Gerrymander Efforts.

PULSE POINTS

WHAT HAPPENED: A Virginia state appeals court has issued an injunction blocking the implementation of legislation adopted by Democrats in the state general assembly that would put a partisan gerrymandered congressional map on the state ballot as a referendum in late April.

👤WHO WAS INVOLVED: The Virginia Court of Appeals, the Virginia Supreme Court, Virginia Democrat lawmakers, voters, and Virginia Republicans.

📍WHEN & WHERE: The appellate ruling and injunction were handed down on Tuesday, January 27, 2026.

💬KEY QUOTE: “Therefore, any attempt to repeal Section 30-13 which does not comply with this Constitutional mandate, is NULL and VOID.” — Virginia Court of Appeals

🎯IMPACT: The ruling, while still subject to reversal by the state’s Supreme Court, is a significant blow to Virginia Democrats who have sought to implement a very Democrat-friendly congressional map ahead of the 2026 midterm elections.

IN FULL

A Virginia state appeals court has issued an injunction blocking the implementation of legislation adopted by Democrats in the state general assembly that would put a partisan gerrymandered congressional map on the state ballot as a referendum in late April. The ruling will likely be appealed by Democrat lawmakers and set a final decision before Virginia’s Supreme Court.

The appellate court found that by adopting the legislation just four days before the state’s general election last November, lawmakers violated notice requirements under the state’s constitution. “The General Assembly has attempted or is attempting to repeal Section 30-13, which is fully within their power to do. However, under Article IV, Section 13 of the Constitution of Virginia, ‘All laws enacted at a regular session… shall take effect on the first day of July following the adjournment of the session of the General Assembly at which it has been enacted … unless in the case of an emergency (which emergency shall be expressed in the body of the bill) the General Assembly shall specify an earlier date by a vote of four-fifths of the members voting in each house…'” the judges stated.

They continued, “Therefore, any attempt to repeal Section 30-13 which does not comply with this Constitutional mandate, is NULL and VOID.” The ruling, while still subject to reversal by the state’s Supreme Court, is a significant blow to Virginia Democrats who have sought to implement a very Democrat-friendly congressional map ahead of the 2026 midterm elections. A number of legal observers have noted it is unlikely that the Virginia Supreme Court will reverse the appellate decision.

The National Pulse reported in December last year that Virginia House Speaker Don Scott (D) was considering a plan to redraw the state’s Congressional maps in a way that could give Democrats a significant advantage, potentially shifting the current 6-5 delegation in favor of Republicans to a 10-1 Democratic majority. However, the latest ruling would prevent the implementation of any new maps until 2027, after the 2026 midterms.

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By Popular Demand.
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Appeals Court Overturns Biden Judge’s Ban on ICE Pepper Spraying, Arresting Agitators.

PULSE POINTS

WHAT HAPPENED: A panel of the United States Court of Appeals for the Eighth Circuit lifted an injunction issued by U.S. District Judge Katherin Menendez, which had restricted federal agents’ actions during Minneapolis protests.

👤WHO WAS INVOLVED: The Trump Administration, U.S. District Court Judge Katherin Menendez, the Department of Homeland Security (DHS), U.S. Immigrations and Customs Enforcement (ICE), and anti-ICE protesters in Minneapolis.

📍WHEN & WHERE: The decision was issued by the Eighth Circuit Court of Appeals following a January 16 ruling by Judge Menendez in Minneapolis.

💬KEY QUOTE: “To the extent the injunction’s breadth and vagueness cause federal agents to hesitate in performing their lawful duties, it threatens to irreparably harm the government and undermine the public interest.” – Eighth Circuit Court of Appeals

🎯IMPACT: The ruling allows federal agents to resume their duties without the restrictions imposed by the injunction, which the court found to be overly broad and vague.

IN FULL

The United States Court of Appeals for the Eighth Circuit has overturned an injunction issued by U.S. District Court Judge Katherin Menendez blocking federal law enforcement from pepper spraying, detaining, arresting, or otherwise engaging with protestors in Minneapolis, Minnesota, without probable cause. Judge Menendez, a Joe Biden appointee, had ruled in favor of protesters suing the Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE), claiming violations of their First and Fourth Amendment rights.

The Eighth Circuit decision emphasizes that Judge Menendez’s decision failed to consider the varied nature of the conduct and circumstances involved. The court stated, “We accessed and viewed the same videos the district court did. What they show is observers and protestors engaging in a wide range of conduct, some of it peaceful but much of it not. They also show federal agents responding in various ways.” The court further noted that the differences in conduct made it impossible to address all claims in “one stroke.”

Additionally, the panel criticized the injunction for being too vague, stating that it left federal agents in a precarious position of having to predict what might be considered “peaceful and unobstructive protest activity.” The court emphasized that the videos demonstrated a rapidly changing environment where peaceful and obstructive actions often overlapped, making it difficult for law enforcement to act decisively.

The court also warned that the injunction’s vagueness and breadth could lead federal agents to hesitate to perform their lawful duties, potentially harming the government and undermining the public interest. The ruling stated, “To the extent the injunction’s breadth and vagueness cause federal agents to hesitate in performing their lawful duties, it threatens to irreparably harm the government and undermine the public interest.”

Judge Menendez is also presiding over another case involving a broader motion to enjoin ICE operations, a filing by Minnesota Attorney General Keith Ellison that has been criticized as constitutionally unfounded.

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By Popular Demand.
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Nurse Under Investigation for TikToks About Poisoning ICE Agents.

PULSE POINTS

WHAT HAPPENED: A nurse at Virginia Commonwealth University (VCU) Health is under investigation after posting videos online encouraging the poisoning of federal law enforcement.

👤WHO WAS INVOLVED: The nurse, identified through a now-deleted TikTok account called Redheadredemption, VCU Health, VCU Police, and social media account LibsOfTikTok.

📍WHEN & WHERE: The videos were posted on TikTok and later shared on X, with VCU Health confirming the investigation in a statement to the media.

💬KEY QUOTE: “The content of the videos is highly inappropriate and does not reflect the integrity or values of our health system.” – VCU Health

🎯IMPACT: The nurse has been placed on administrative leave; the videos have sparked widespread outrage online.

IN FULL

Virginia Commonwealth University (VCU) Health and the VCU Police Department are investigating after a nurse employed by the hospital system posted a series of social media videos encouraging poisoning and other covert attacks on federal law enforcement officers, including U.S. Immigration and Customs Enforcement (ICE) agents. The nurse, identified through a now-deleted TikTok account under the name Redheadredemption, has been placed on administrative leave while the investigation is ongoing.

The videos, which circulated widely online after being shared by the social media account LibsOfTikTok, included suggestions for using syringes filled with saline or succinylcholine as a “deterrent,” creating poison ivy water to spray on law enforcement, and tampering with the food or drinks of ICE agents. Succinylcholine is a powerful paralytic anesthetic that causes temporary muscle paralysis.

In one video captioned “#staytoxic,” the nurse encouraged single women to use dating apps to identify ICE agents and incapacitate them using laxatives. “Single ladies, where these ICE guys are going, have a chance to do something, you know, not without risk, but could help the cause for sure,” she said. “Bring some Ex-Lax and put it in their drinks. Get them sick. You know, nobody’s going to die. Just enough to incapacitate them and get them off the street for the next day.”

She also recommended making contact with hotel staff and others responsible for serving ICE officers’ breakfast, saying, “Let’s make their lives f**kin’ miserable.”

In a statement, VCU Health said, “We prioritize the health and safety of anyone who comes to us for care. We are aware of a series of videos that appear to have been posted by an individual confirmed to be an employee of our health system.” The health system added that “the content of the videos is highly inappropriate and does not reflect the integrity or values of our health system.” Officials confirmed the employee will not be in hospital facilities or interacting with patients during the review and that VCU Police are assisting with the investigation.

The posts triggered widespread backlash, with many critics calling for the nurse’s professional license to be revoked.

Federal officials have reported sharp increases in threats and attacks against ICE officers, even as the agency continues to make arrests involving violent offenders, child predators, and armed criminals. Recent cases have also included criminal charges against individuals accused of threatening to kill ICE agents.

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Greenland’s Latest Statement Leaves the Door Open for Sale.

PULSE POINTS

WHAT HAPPENED: A senior Greenlandic cabinet minister rejected the idea of the U.S. acquiring military bases in Greenland as sovereign American territory, at least “for now.”

👤WHO WAS INVOLVED: Greenlandic cabinet minister Naaja Nathanielsen, Greenlandic Prime Minister Jens-Frederik Nielsen, Danish Prime Minister Mette Frederiksen, U.S. President Donald J. Trump, and NATO Secretary General Mark Rutte.

📍WHEN & WHERE: Comments were made in an interview published Tuesday, following discussions at the World Economic Forum in Davos, Switzerland.

💬KEY QUOTE: “Greenland giving up sovereignty is not on the table for now,” said Naaja Nathanielsen.

🎯IMPACT: The Greenlandic rejection suggests tensions remain over the future of Greenland, although the use of the words “for now” suggests the Greenlanders could still be persuaded by the right offer.

IN FULL

Naaja Nathanielsen, a senior Greenlandic cabinet minister, announced Tuesday that U.S. President Donald J. Trump’s push to acquire U.S. military bases on the island as sovereign American territory—a key provision in the framework deal agreed with NATO chief Mark Rutte at the World Economic Forum—crosses a “red line.” In an interview with American media on Tuesday, Nathanielsen dismissed the notion of Greenland surrendering sovereignty “for now,” despite Trump’s claims that a new framework with NATO would effectively grant the U.S. ownership of its bases on the island, which is currently under Danish sovereignty. Notably, the United Kingdom has two Sovereign Base Areas in Cyprus, negotiated before Cyprus became independent in the 1960s.

“Greenland giving up sovereignty is not on the table for now,” she stated, echoing Greenland Prime Minister Jens-Frederik Nielsen but using a form of words that suggests the Greenlanders could still be persuaded by the right offer. Nathanielsen also claims that her government was informed of discussions between Trump and NATO Secretary General Mark Rutte only after they had already occurred.

She emphasized that NATO “does not have a jurisdiction or mandate” to negotiate sovereignty. Danish Prime Minister Mette Frederiksen reinforced this position, stating that while Denmark is open to discussions, “we cannot negotiate on our sovereignty.”

During an interview last week following the World Economic Forum (WEF) summit in Davos, Switzerland, President Trump asserted the United States would have “total access to Greenland” and “all the military access we want.” Currently, the U.S. military operates one base on the island, Pituffik Space Base, which houses around 150 personnel and a critical radar installation. A defense agreement already permits Washington to expand operations, but only with Greenlandic and Danish consent.

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By Popular Demand.
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Person Shot by Border Patrol is in Critical Condition.

PULSE POINTS

WHAT HAPPENED: A person was shot in an incident involving U.S. Border Patrol.

👤WHO WAS INVOLVED: U.S. Border Patrol and an unidentified individual.

📍WHEN & WHERE: Tuesday morning in southern Pima County, Arizona.

💬KEY QUOTE: “The incident remains under active investigation by law enforcement agencies.” – Santa Rita Fire Department

🎯IMPACT: The wounded individual was transported in critical condition to a regional trauma center.

IN FULL

On Tuesday, an incident involving the U.S. Border Patrol led to a person being shot in southern Pima County, Arizona. As of the time of publication, the individual’s identity has not been disclosed.

The shooting occurred around 7:30 AM, according to a news release from the Santa Rita Fire District. Emergency services transported the individual, who was in critical condition. Details about the events leading up to the shooting are currently unclear, and there is no information on whether any law enforcement personnel were injured during the incident.

Medical crews from the Santa Rita Fire District and American Medical Response provided initial care on-site. The patient was then transferred to a local medical helicopter for rapid transport to a regional trauma center.

Notably, the incident follows the fatal shooting of anti-ICE activist Alex Pretti by Border Patrol in Minnesota. Before that, anti-ICE activist Renee Good was also fatally shot while driving her SUV into a federal officer. Both shootings resulted in widespread and often violent demonstrations.

The Santa Rita Fire Department said the Arizona shooting “remains under active investigation by law enforcement agencies.”

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Alex Pretti Broke Rib a Week Before His Death During Earlier Attempt to Impede Federal Agents.

PULSE POINTS

WHAT HAPPENED: CNN has reported that Alex Pretti previously confronted federal agents in Minnesota, painting a pattern of behavior and potentially explaining why he was met with immediate force before his death.

👤WHO WAS INVOLVED: Alex Pretti, federal immigration officers, and ICE agents.

📍WHEN & WHERE: Minneapolis, a week before his death.

💬KEY QUOTE: “When our law enforcement encounter a violent agitator… our law enforcement make records to advance prosecution.” – Tricia McLaughlin

🎯IMPACT: Rising attacks on federal law enforcement are attributed to inflammatory rhetoric, as well as organized protest groups, some featuring elected Democrats.

IN FULL

Sources have indicated to CNN that Alex Pretti had an altercation with federal officers about a week before his death, interfering with their efforts to detain illegal migrants. During this confrontation, Pretti suffered a broken rib when officers tackled him.

DHS Assistant Secretary Tricia McLaughlin stated, “When our law enforcement encounter a violent agitator who is breaking the law, obstructing law enforcement or assaulting them, our law enforcement make records to advance prosecution. This is not ground breaking, it is standard protocol.”

The initial incident began when Pretti stopped his vehicle after observing ICE agents pursuing illegal migrants. He then began shouting and using a whistle, later claiming that five agents tackled him, resulting in his broken rib, though he was released shortly after.

The rise in vehicle attacks against ICE and CBP is concerning, with over 100 incidents reported since January 20, more than double the previous year. This increase is linked to rhetoric from sanctuary politicians, leftist activists, and mainstream media.

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Coinbase CEO Backs Chinese Communist Party’s Move to Control Crypto.

PULSE POINTS

WHAT HAPPENED: Coinbase CEO Brian Armstrong heaped praise on the Chinese Communist Party’s approach to controlling digital currency interest payments, sparking debate over stablecoin policies in the U.S.

👤WHO WAS INVOLVED: Coinbase CEO Brian Armstrong, U.S. banking lobby groups, and Chinese financial institutions.

📍WHEN & WHERE: Armstrong’s comments were made in January 2026, via X (formerly Twitter), amidst ongoing U.S. stablecoin regulation debates.

💬KEY QUOTE: “China has decided to pay interest on its own stablecoin, because it benefits ordinary people, and they recognize it as a competitive advantage.” – Brian Armstrong

🎯IMPACT: The remarks have caused concern that Armstrong is in favor of a central bank digital currency (CBDC), which is required for the government to pay inflation-causing interest rates on digital accounts.

IN FULL

Coinbase CEO Brian Armstrong has heaped praise on the Chinese Communist Party’s digital currency policies, suggesting the U.S. could learn from China in implementing what is effectively a central bank digital currency (CBDC). The argument over CBDCs continues to rage in the United States. Early in his second term, President Trump issued an executive order “to protect Americans from the risks of Central Bank Digital Currencies (CBDCs).”

This didn’t stop Armstrong from praising China’s decision to pay interest on its digital yuan, claiming it benefits ordinary people and serves as a competitive advantage. The replies were not as keen, with X users noting, “China’s version is a CBDC at best. Not a stablecoin. Although they looked and sounded the same but they are not.”

Another said, critically: “How to get people to use your dystopian CBDC: pay them interest. It’s textbook marketing, luring the mice with free cheese.”

The interest program is aimed at addressing low adoption rates of the digital yuan, with commercial banks subsidizing the effort rather than the central bank.

Armstrong’s surprising missive comes as Coinbase faces pressure from U.S. banking lobbyists over stablecoin yield-sharing programs. The GENIUS Act, passed in July 2025, allows platforms like Coinbase to offer stablecoin rewards, but banking groups are lobbying to eliminate this provision, arguing it threatens traditional banking deposits.

The Coinbase CEO recently told Bloomberg that Bitcoin could still hit $1,000,000 by 2030, despite the cryptocurrency’s price stabilizing around $87,500 per coin in recent months.

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By Popular Demand.
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