America’s powerful lobby is “panicking” in the potential of Stablecoins to interrupt their traditional business model, especially when it comes to harvesting stablecoins, according to Austin Campbell, a professor at New York University and founder of Zero Knowledge Consulting.
In a post of May 21 Social Media starting with, “The Empire Lobbies Back,” Campbell claims that the banking industry is especially alarmed by the potential for stablecoins to offer interest or reward to holders.
In a sharp message aimed at democratic lawmakers, Campbell wrote that “banks want to protect their cartel so they can keep your voters screaming.”
He went to explain how Fractional Reserve Banking allows banks to maximize income while offering depositors a little interest.
The banking lobby says that if Stablecoins pay interest or any other type of financial reward, the banks “are doomed,” Campbell added.
“This is bare pandering for cartel protection,” he said while urging the opposition party to prevent the “screwing” of its voters who supported any type of blanket ban on Stablecoin’s interest payments.
Campbell has long been promoting for the wise law of Stablecoin in the United States, Warning to a subcomm Committee of Congress in April 2023 Failure to fulfill such laws will drive those who have given other countries.
Related: Pareto launches synthetic dollars supported by private credit
The increase in yield-bearing stablecoins
Campbell’s analysis of the traditional banking industry analysis is in the midst of a wave of stablecoin providers launching tokens that carry yield.
Number Cointelegraph reportedThe US Securities and Exchange Commission (SEC) in February approved the first security that carries stablecoin through figure markets. At the time of its launch, the new Ylds token offered 3.85% harvest.
Figure Markets does not mean the only player that drops the stablecoin route of the yield.
In February, Tether co-founder reeve collins It is announced that his PI protocol will allow investors to mint the USP Stablecoin in exchange for USI, equivalent to paying interest.
The USDS also offers spark protocols of interesting interest payments generated by decentralized lending and tokenized treasurys.
“It is not acceptable not to receive the least rate of no risk for handling stablecoins,” said Sam Macpherson, CEO of Spark Protocol Developer Phoenix Labs, said Bloomberg.
Apart from Bitcoin (Btc), Stablecoins can be the most affecting case of use for blockchain technology, including CEO of Coinbase Canada Lucas Matheson Cointelegraph says that the global Stablecoin volume is about three times with giant credit cards.
Related: Canada has stablecoin approach, but has room to catch up
