Coinbase policy director refutes bank warnings about stablecoins threatening deposits

Faryar Shirzad, director of policy at Coinbase, refuted the Bank of America’s claim that stablecoins threaten financial stability, saying it was just to protect income. He believes stablecoins will not lead to deposit outflows, noting that community banks have provided no evidence that large banks hold trillions of dollars in funding at the Federal Reserve. Hilzade said banks oppose stablecoins because of competition in the payments sector, which threatens $187 billion in card swipe fees. He urged banks to adopt the technology for efficiency and compared the boycott with past boycotts to ATMs and online banking.