Stablecoins just hit a record $322 billion – and the…
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Stablecoins just hit a record $322 billion – and the bank-run warnings are getting louder
> Except from article.
Despite these legal separations, commercial banks view the expansion of stablecoins as an existential balance-sheet threat.
When an enterprise or retail client exchanges fiat currency for a third-party stablecoin, that liquidity is effectively drained from the traditional banking system.
This shifts the financial relationship from a heavily regulated deposit institution to a non-bank digital issuer, costing the bank access to vital payment data, transaction fees, and, most critically, low-cost funding.
#cryptocurrency
> Except from article.
Despite these legal separations, commercial banks view the expansion of stablecoins as an existential balance-sheet threat.
When an enterprise or retail client exchanges fiat currency for a third-party stablecoin, that liquidity is effectively drained from the traditional banking system.
This shifts the financial relationship from a heavily regulated deposit institution to a non-bank digital issuer, costing the bank access to vital payment data, transaction fees, and, most critically, low-cost funding.
#cryptocurrency
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