The Stablecoin-Focus Genius Act, which was conducted in July, would motivate an release of deposits from traditional bank accounts to higher yield stablecoins, according to multicoin capital co-founder.
“The Genius Bill is the beginning of the end for banks’ ability to ride off their retail depositors with little interest,” co-founder of multicoin capital and partner management, Tushar Jain, Na -Post on X on Saturday.
“Post a Genius Bill, I look forward to Big Tech Giants with a distribution of Mega (Meta, Google, Apple, etc.) to start competing with banks for retail deposits,” Jain added, trying to offer them better stablecoin yields with better user experience for immediate resistance who are banking players.
He mentioned that Banking groups Tried to “protect their revenues” in mid -August by calling regulators to close a so -called loophole that could allow stablecoin providers to pay interest or yield to stablecoins through their associates.
The Genius Act prohibits stablecoin releases from offering interest or yield to token holders but does not clearly expand the ban on crypto exchanges or affiliated businesses, which potentially enable those who have the sidestep of the law by offering yields through partners.
US banking groups remember the broad adoption of Ani-bearing stablecoins can break the traditional Banking systemrelying on banks that attract deposits to fund the lending.
$ 6.6 trillion can leave banking system
The adoption of mass stablecoin may Trigger Around $ 6.6 trillion in deposit flows from the traditional banking system, the US Department of Treasury Estimated in April.
“The result will be a greater risk for flying the deposit, especially in times of fatigue, which will distract credit creation throughout the economy. The corresponding reduction in credit supply means higher interest rates, fewer loans, and increased costs for major street businesses and households,” the bank policy institute said in August.
To stay competitive, “banks have to pay more interest to depositors,” Jain said, adding that “their profits will significantly suffer as a result.”
Stablecoins offers users up to 10x more interest
The average interest rate for US saving accounts is 0.40%, and in Europe, the average rate in saving accounts is 0.25%, Patrick Collison, CEO of online payment platform stripe, Says Last week.
Meanwhile, meanwhile Rates For Tether (USDT) and USDC of the Circle (USDC) to the borrowing and lending The platform aave is currently standing 4.02% and 3.69%, respectively.
Large tech companies have been reported exploring Stablecoins
Jain’s bet on Big Tech Giants follows a Fortune Report in June stating that Apple, Google, Airbnb, and X are among the leading companies Exploring the release of stablecoins to lower fees and improve cross-border payments. There have been no further development since.
Related: All currencies will be stablecoins by 2030: Tether Co-Founder
The Stablecoin market is currently sitting at $ 308.3 billion, led by USDT and USDC at $ 177 billion and $ 75.2 billion, coingecko Data Shut up.
The Treasury Department predicts the Stablecoin Market Cap will pour another 566% to reach $ 2 trillion by 2028.
Magazine: Crypto wants to overthrow banks, now they turn into the stablecoin fight
