Coinbase: The view that stablecoins will lead to large-scale outflow of bank deposits is untenable

Odaily Planet Daily News Coinbase Chief Policy Officer Faryar Shirzad wrote that banks across the United States are warnings about stablecoins that they will suck deposits and weaken lending operations. This statement is now ubiquitous in mainstream media, and it distorts the evidence and reality of stablecoin use. In fact, the view that stablecoins will lead to large-scale outflows of bank deposits is simply untenable. There is no meaningful connection between the adoption of stablecoins and the outflows of community banks. Stablecoins will not pose a threat to loans, and there is no reason to believe that the situation of large banks will be worse. Instead, what we really see is the coordinated action of large financial institutions, aiming to slow innovation and keep the rent they earned from payment systems that have never fundamentally changed in decades.