Stablecoins, tokenized versions of fiat currencies that move to blockchain metals, will force banks and other financial institutions to offer customers to bear their deposits to remain competitive, according to Patrick Collison, CEO of Payment Company Stripe.
The average interest rate for US saving accounts is 0.40%, and in the EU, the average rate in saving accounts is 0.25%, Collison Says In response to VC Nic Carter’s X Post outlining the Increasing yield-bearing stablecoins and the future of the sector. Collison added:
“Depositors are going, and should, earn something closer to a return to the market in their capital. Some lobbies are currently pushing the post-genius to further tighten any kind of rewards associated with Stablecoin deposits.
The importance of business is clear-cheap deposits are great, but being overly consumer-hostile has made me feel like a loss of position, “he continued.
Stablecoins have continued to grow in market capitalization and user adoption since 2023, to ride in compliance with Passing a genius stablecoin bill In the United States. The genius has prepared the way for a regulated Stablecoin industry but also prohibits yield sharing.
Related: Stablecoin Market Boom up to $ 300B is ‘rocket fuel’ for Crypto rally
The banking industry is fighting to tighten opportunities with the yield for stablecoins
The banking lobby Pushed back against the stablecoins with interest While US lawmakers are consciously what provisions will be included in the final draft of the Stablecoin genius regulation, according to a Report From the American Banker.
Banks and their allies have argued in Congress that Stablecoins offering opportunities that bring interest to clients to undermine the banking system and erase market sharing.
“Do you want a stablecoin issuer to issue an interest? Perhaps not, because if they release interest, there is no reason to put your money on a local bank,” New York Senator Kirsten Gillibrand Said at DC Blockchain Summit In March.
However, the crypto industry executives see the increase of stablecoins as the next logical development and predict that stablecoins will consume legacy fiat payments.
“All the money will be a stablecoin. So even the Fiat Currency will be a stablecoin. It will only be called dollars, euro, or yen,” Reeve Collins, co-founder of Stablecoin Issuer Tether, said to Cointelegraph in token2049.
Magazine: Crypto wants to overthrow banks, now they turn into the stablecoin fight
