The Coinbase pushed back against the claims that stablecoins threats the banking system, calling the idea of the “erosion of a deposit” of a legend.
In a Post on the Blog of Tuesday, the Crypto Exchange Argued That is the fear of stablecoins draining bank deposit is baseless. The Coinbase claimed that the “recent review” shows that there is no significant link between the Stablecoin adoption and deposits of community banks.
“Stablecoins do not threaten lending-they offer a competitive alternative to banks of $ 187 billion annual swipe-fee windfall,” the exchange exchange, adding that stablecoins are not saving accounts but payment tools. “A person who buys stablecoins to pay for a supplier abroad does not reallocating their savings – they choose a faster, cheaper payment method,” he added.
The company also challenged recent claims made to a US Treasury Advisory Advisory Committee Report.
Related: Bank of England Stablecoin Limits slammed by UK Crypto Groups: Report
Most of Stablecoin activity occurs outside the US
To a companion PaperCoinbase said most of Stablecoin activity occurs worldwide, especially in regions with weak financial infrastructure. The paper, citing the International Monetary Fund, said that more than $ 1 trillion of $ 2 trillion Stablecoin transactions in 2024 took place outside the US, especially Asia, Latin America and Africa.
Because almost all major stablecoins are dollars-pegged, their use abroad strengthens the dominance of the dollar. Therefore, instead of erasing US deposits, Stablecoins help expand the global influence of the dollar without significantly affecting the presence of domestic credit, the exchange has argued.
It also stated that the relationships between bank stock performance and crypto companies such as Coinbase and Circle were positive following the passage of Guide and Establishment of National Innovation for the US Stablecoins Act (Genius Act)showing that stablecoins and banks can come together.
Cointelegraph reached the bank policy institute for the comment, but did not receive a response by publishing.
Related: Yala’s Yu Stablecoin Failed
Banks need to improve their offerings
Last week, Bitwise’s investment leader Matt Hougan US banks criticized for complaining Regarding Stablecoin competition instead of improving their offerings, especially interest rates for depositors. He argued that the banks had long exploited depositors by offering low yields and were now in panic while Stablecoins offered better successors.
In August, US banking groups, led by the Bank Policy Institute, urged Congress to Close a so -called loophole In the Genius Act, Stablecoin readers may allow for yields indirectly through crypto exchanges or affiliates.
In response, the Crypto Council for Innovation and Blockchain Association Lawmakers ask us to reject the proposal.
Magazine: Bitcoin vs Stablecoins Showdown approaches as the Genius Act approaches
