Citi warns the benefit of stablecoin can drain bank deposits star-news.press/wp

This organizational gap can create an unequal field as Stablecoin platforms with competitive returns are attracted while traditional banks face restrictions on deposit prices and organizational expenses that limit their ability to compete.

Sean Viergoz, the advisory leader of the PWC Banking and Capital Markets, participated in the report “Banks may face higher financing costs by relying more on wholesale markets or raising deposit prices, which may make credit more expensive for families and companies.”

Banking groups cited estimates of the Treasury, which indicates that the carrier -carrier stablecoins can lead to up to $ 6.6 trillion in deposit flows, which may change how banks are funded to loans and liquidity management.

During the eighties that GHOSE referred to, withdrawals from bank accounts exceeded new deposits by $ 32 billion between 1981 and 1982, when consumers chased higher returns in the money market funds.

Banking deposits act as a fundamental financing source for loans for companies and consumers, which means that external flows on a large scale may tighten credit availability and pay borrowing costs upper through the economy.

City contradictory position on Stablecoins

Ironically, while GHOSE warns of the systematic risks of Stablecoin’s revenues, Citigroup explores Stablecoin’s nursery services and is considering issuing its dollar digital symbol.

CEO Jane Fraser confirmed during the July profit call that City “Looking at the City Steplcoin version” During the development of premium deposit services for companies customers looking for settlement capabilities around the clock throughout the week.

The bank already offers Blockchain dollar transfers between its offices in New York, London and Hong Kong, while putting itself to capture the infrastructure layer as Stablecoins acquires majorly.

However, the encryption groups pushed back against bank concerns, as the Innovation encryption council argues that restriction of Stablecoin’s revenues “Tilt the stadium for the benefit of old institutions” And suffocate the choice of the consumer.

Coinbase Paul Ghroul’s chief legal officials rejected, Writing on x He was already legislators “I rejected your unrestricted efforts to avoid competition.” During the passage of the genius law.

Stablecoins on the path of reshaping the global payment infrastructure

Conflict of interest is revealed as Stablecoins is expected to get the annual payment volume of $ 1 trillion by 2028 and can constitute 10 % of the US money offer, which mainly changes monetary policy dynamics.

Modern research from Keyrock and the case It also indicates that Stablecoins can facilitate payments in the cheapest up to 13 times of traditional banks during stability in seconds.

Treasury Secretary Scott Bessin recently He tweeted his support for StablecoinOn the other hand “Stablecoins will expand the dollar’s arrival in billions around the world and lead to an increased demand for US Treasury bonds” As support for assets.

The Genus Law “Mizan” designed to prevent large technology Wall Street includes controlling the Stablecoin Market by requesting separate entities to issue them and prohibiting the payment payments.

However, platforms such as Coinbase and PayPal continue to provide Stablecoin bonuses, on the pretext that the ban applies only to exporters instead of brokers or stock exchanges.

Look forward, the clash between traditional banking assets and digital assets increases the fact that programmed money is disrupting old payment systems, while the speed and efficiency of Stablecoins that are boundless in its position to become a multi -dollar standard for global settlement.