UK Lawmakers Press Coinbase Over Stablecoin Risks

[mendez]

The House of Lords questioned Coinbase executive Tom Duff Gordon this week over whether stablecoins could destabilize the UK banking system. Lawmakers raised concerns about Silicon Valley Bank-style runs, deposit drains from traditional banks, and the broader risks to financial stability if consumers shift funds into digital dollar-style assets.

Duff Gordon defended fully reserved, regulated stablecoins as “safer than uninsured bank deposits,” arguing they are backed one-to-one by cash and high-quality government securities. He maintained that fears of large-scale bank disintermediation were exaggerated and emphasized the potential for stablecoins to reduce payment costs and speed up cross-border transactions.

[johnblockbuster]

“safer than uninsured bank deposits” ok but can it make me coffee and pay my rent