Banks warn stablecoins could siphon deposits from the banking system, but policy and regulatory experts say there’s little evidence of it happening yet.
Banks warn stablecoins — especially those paying yield — could pull deposits out of the banking system, but policy and finance experts say there’s little evidence of that so far.
Major US bank Standard Chartered recently estimated in a research note that stablecoin growth could drain bank deposits. The report estimates “that US bank deposits will decrease by one-third of stablecoin market cap,” which currently stands at $308.15 billion according to DeFiLlama data.
The debate has intensified as US lawmakers weigh whether to prohibit interest on stablecoin holdings under a proposed version of the crypto market structure bill, or CLARITY Act, which has been delayed by protests from inside the crypto industry despite banking sector support.
