Contrary to the claims of the United States bank industry, Stablecoins do not represent a risk to the financial system, according to Crypto Exchange Coinbase policy (COIN)Faryar Shirzad. Banks’ statements that are myths prepared to defend their income, wrote in a blog post by Tiday.
“The central statement, which Stablecoins will cause a massive output of bank deposits, simply can’t stand,” Shirzad wrote. “The recent analysis does not show a significant link between the adoption of Stablecoin and the deposit flight for community banks and there is no reason to believe that large banks would be worse.”
The largest lenders still have billion dollars in the Federal Reserve and if the deposits were really at risk, he argued, they would be competing harder for customer funds by offering higher interest rates instead of parking effective in the Central Bank.
According to Shirzad, the true reason for the opposition of banks is the payment business. Stablecoins, digital tokens whose value is linked to an asset of real life, such as the dollar, offers faster and faster forms to move money, threatening approximately $ 187 billion in annual revenues of sliding rates for traditional cards and banks of cards.
He compared the current setback with the previous battles against ATMs and online banking, when the headlines warned about systemic hazards, but, he said, they finally tried to protect the rooted profits.
Shirzad also dismissed the reports that Billones predict in possible deposits of deposits to Stablecoins, whose total market limit is around $ 290 billion, according to Coingcko data. He emphasized that Stablecoins is mainly used as payment tools, to trade digital assets or send funds abroad, not as long -term savings products.
He argued that someone who bought Stablecoins to settle with a supplier abroad is opting for a more efficient transaction method that passes through his bank, does not extract money from a savings account.
He urged banks to adopt technology instead of resisting it, saying that Stablecoin rails could reduce the liquidation times, lower corresponding bank costs and provide payments 24 hours. These institutions willing to adapt, he wrote, to benefit from change.
The United Kingdom also faces concerns about the effect of the stable on the financial industry.
Financial Times reported Monday that the Bank of England is considering establishing limits in how many “systemic” companies of Stablcoins can maintain, establishing thresholds as low as 10,000 pounds ($ 13,600) For individuals and around 10 million pounds for companies.
Officials define systemic stable such as those already widely used for the United Kingdom payments or are expected to turn like this, and say that the limits are necessary to avoid sudden deposit outputs that could weaken loans and financial stability.
