Five Stablecoin Myths Debunked By Columbia Professor

Omid Malekan, an adjunct professor at Columbia Business School, contends that the US banking industry is promoting “myths” about stablecoin yields to safeguard its own interests. He believes that Congress should prioritize consumers over highly profitable banks and not allow these concerns to hinder the passage of crypto market structure legislation. Malekan refutes the idea that stablecoin growth will necessarily decrease bank deposits, arguing it could even increase them due to demand from abroad and the need for reserves in Treasury bills and bank deposits. He also states that stablecoin competition won’t harm lending overall, but may reduce bank profits, and that banks aren’t the sole source of credit. Furthermore, he challenges the notion that community banks are particularly vulnerable, asserting that larger banks are more at risk. Malekan concludes that preventing stablecoin issuers from sharing yields with users protects bank profits at the expense of savers and advocates for prioritizing innovation and consumers.

(Source：Cointelegraph)