Matt Hogan, head of investment at Bitwise, says American banks must provide better rewards to attract and maintain customers instead of arresting the threat that Stablecoins poses for their profits.
“If local banks are concerned about the competition from Stablecoins, they must pay more interest on deposits,” books On x on Tuesday.
He added that the banks are concerned only because they were “misused the use of depositors as a free capital for decades.”
Hougan’s comments come as Citi claimed last month that Stablecoins carriers of the return Light a wave of clouds from banksAnd since American banks pressed Congress Tightening United States Stablecoin Laws on Payment of Return.
Hogan screams “first -class thinking”
Hagan said that “scary articles about Stablecoins destroy local lending markets is ridiculous,” in response to Bloomberg. a report On Monday, the workers who are paid at Stablecoins and the potential impact on banks.
Bloomberg a report The aforementioned community and regional banks face a new competitive threat from Stablecoins because they depend on customer deposits for lending, unlike large banks that can reach wholesale markets.
The Stablecoins report compared to positions to the emergence of financial markets in the 1970s, which provided a higher alternative to traditional savings accounts, which led to the rush to withdraw money from banks.
Hagan added that speculation that credit will “dry” if Stablecoins is allowed to compete with banks is “classic first -class thinking.”
Hogan said that banks may provide less credit if they have Less depositBut people with stablecoins will provide credit directly to borrowers through decentralized financing applications.
“The loser here is bank profit margins. The winner here is the individual savers. The economy will be fine.”
Stablecoin Imagine savings accounts abroad
Some Stablecoins provide up to 5 % on deposits on encryption platforms, which is a much more attractive rate than the American national savings rate of only 0.6 % and is still higher than the best rate of 4 %. According to To Bankate Data.
Related to: The revenue that carries the supply of Stablecoin after the Genius Act
When inflation and banking fees are considered, consumers often lose money by leaving the money sitting in a bank over time without returning.
Stablecoin supporters said that symbols offer other benefits on banks, with speed speeds at a lower cost, with no contract fees.
Bank pressure against stablecoin
Last month, the banking industry the pressure To prevent the issuance of Stablecoin exporters from providing yield, claiming that there is “opening“In the regulatory genius law.
Encryption I pushed back Against bank fears, warning that legislation revisions will benefit traditional banks with stifling innovation and consumer choice.
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