Banks’ concern over stablecoins ‘ignores reality’ — Coinbase

Coinbase policy chief Faryar Shirzad stated that the narrative claiming stablecoins will destroy bank lending ignores reality, noting that most demand originates outside the US, thereby expanding dollar dominance globally rather than competing with domestic banks. Coinbase's analysis suggests that arguments from US banking groups, which fear stablecoins offering yield will trigger deposit outflows, echo historical worries about innovations like money market funds. The firm contends that stablecoin demand is driven by international users hedging against local currency depreciation and accessing dollars, with about two-thirds of transfers occurring on DeFi platforms, functioning as the "transactional plumbing" outside the domestic banking system. Furthermore, Coinbase dismisses fears for community banks, asserting minimal overlap between their customers and stablecoin holders, and suggests that even if stablecoin circulation reached $5 trillion globally, the impact on US checking or savings accounts (totaling over $18 trillion) would remain marginal, while increasing the dollar's global influence.

(Source：Cointelegraph)