Unlike complaints from the American banking sector, stablecoins do not present a risk to the financial system, according to the director of the Crypto Coinbase policy Coinbase (COIN)Faryar Shirzad. The affirmations of the banks according to which are the myths made to defend their income, he wrote in a blog article Tueday.
“The central assertion – that the stablecoins will cause a mass exit of bank deposits – simply does not hold,” wrote Shirzad. “The recent analysis does not show any significant link between the adoption of the stable reserve and the flight of deposit for community banks and there is no reason to believe that the big banks would get out of it.”
The largest lenders still have billions of dollars in the federal reserve and if the deposits were really in danger, he argued, they would compete with customer funds by offering higher interest rates rather than parking from the Central Bank
According to Shirzad, the real reason for the opposition of banks is the payment activity. Stables, digital tokens whose value is fixed to a real asset such as the dollar, offer faster and cheaper means to move money, threatening around $ 187 billion in annual scanning income for card networks and traditional banks.
He compared the current decline in previous battles against automatic ticket distributors and online banking services, when the holders warned of systemic dangers, but he said, finally tried to protect the rooted profits.
Shirzad has also rejected reports predicting billions of potential outings of stablecoins deposits, the total market capitalization of which is around $ 290 billion, according to Coingecko data. He stressed that stablecoins are mainly used as payment tools – to negotiate digital assets or send funds abroad – not as long -term savings products.
Someone who buys stablecoins to settle with a supplier abroad, he argued, opts for a more effective transaction method than the passage of his bank does not draw money from a savings account.
He urged banks to adopt technology instead of resisting it, saying that stable rails could reduce settlement times, reduce the correspondents’ bank costs and provide 24-hour payments. The institutions arranged to adapt, he wrote, to benefit from the change.
The United Kingdom also faces concerns about the effect of stablecoins on the financial industry.
The Financial Times reported on Monday that the Bank of England plans to set the limits of the number of “systemic” people and businesses. ($ 13,600) For individuals and around 10 million pounds for companies.
The authorities define systemic stables like those already widely used for British payments or which should become so, and say that the ceilings are necessary to prevent sudden deposit outputs which could weaken loans and financial stability.
