Why are some banks critical of stablecoins?

[cryptoenthusiast]

A: Critics argue that stablecoins compete with traditional banks for deposits and threaten profits from payment processing. However, industry voices like Bitwise’s Matt Hougan claim banks are overreacting. He notes that banks have historically offered low interest rates and benefited from depositors’ funds, so the rise of stablecoins is just market competition. Hougan suggests banks should improve their services, rather than attempting to block crypto alternatives.

[Couturier]

Exactly stablecoins aren’t a threat, they’re competition — banks should step up their game instead of blocking innovation.