Destabilising: is stablecoin deposit drain a bank funding risk?
While some fear a trillion-dollar flight to stablecoin, others doubt crypto is an existential threat for banks
Stablecoin issuance – supported by the newly minted Genius Act – could present funding issues for US banks if deposits are drained to purchase digital products. But a mass migration from traditional deposits isn’t a foregone conclusion, and sceptics question whether cryptocurrencies will see the rapid adoption some crypto-Cassandras forecast.
Nearly $1 trillion could leave the US banking system
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