Do stablecoins threaten US bank deposits?

[cryptoenthusiast]

A: According to Coinbase, fears that stablecoins are eroding bank deposits are largely exaggerated. The exchange argues that stablecoins are payment instruments, not savings accounts, so using them to send money abroad doesn’t withdraw savings from banks. Their recent analysis suggests there’s no meaningful link between stablecoin adoption and deposit outflows at community banks.

Coinbase emphasizes that stablecoins offer users a faster, cheaper alternative for payments. For instance, someone sending funds to an overseas supplier isn’t reallocating their savings—they’re just choosing a more efficient method of payment.