Banks warn stablecoins could drain trillions from deposits

[bonk]

US banks are escalating warnings that stablecoins could siphon massive amounts of deposits from the traditional banking system. Analysts at Standard Chartered estimate that if the stablecoin market reaches $2 trillion, banks in developed markets could lose around $500 billion in deposits by 2028, with even larger risks in emerging markets.

Bank executives argue that stablecoin rewards could accelerate the shift, while crypto firms say restrictions would stifle innovation. With political money flowing and negotiations underway, the battle over stablecoin rules is becoming a defining financial and regulatory fight in Washington.

[madmax]

calling it a $500b risk while ignoring how much value banks already lost to fintech is wild. stablecoins are just the next step, not the first crack.