Concerns that crypto stablecoins will harm US banks by cannibalizing banking deposits are ill-placed and don’t consider the real-world uses of the tokens, according to Coinbase researchers.
“The ‘stablecoins will destroy bank lending’ narrative ignores reality,” Coinbase policy chief Faryar Shirzad said on Wednesday.
“Most stablecoin demand comes from outside the US, expanding dollar dominance globally, not competing with your local bank.”
Shirzad shared a market note that said the arguments over stablecoins impact on bank deposits and lending “echo familiar worries from earlier innovations like money market funds. Yet they fail to account for how and where stablecoins are actually used.”
US banking groups have argued that stablecoins offering yield could compete with…more
Source cointelegraph.com
Terms of use and third-party services. More here.