In a report published on Monday, Ronit Gus, president of City Ronit Goss, warned that payment on Stablecoin’s deposits could provoke a wave of flows out of banks similar to the boom of the Money Market Fund in the eighties of the last century.
According to the Financial Times, Gos comparison Possible external flows caused by paying interest on Stablecoins to the rise of money market funds in the late 1970s and early 1980s.
That money Balloon From about 4 billion dollars in 1975 to $ 235 billion in 1982, it outperformed banks whose deposits were tightly. organizerFederal Reserve data showed. Withdrawals from bank accounts exceeded new deposits by $ 32 billion between 1981 and 1982.
Sean Viergoz, the Consultance PWC Consultant Consultant Consultant, suggested that the shift from consumers to a higher -yielding stablecoins may clarify troubles to the banking sector.
He said: “Banks may face higher financing costs by relying on wholesale markets or raising deposit prices, which may make credit more expensive for families and companies.”
https://www.youtube.com/watch?
Related to: The bank lobby fights to change the verb of the genius: Is it too late?
American banks argue against Stablecoin
Genus does not allow the Stablecoin Exporters to provide interest to holders, but it does not provide the ban on the exchange of encryption or subsidiary companies. The organizational preparation led to a major reaction by the banking sector.
Several American banking groups led by the local banking policy institute have urged to close what they say is a loophole that may indirectly allow Stablecoin to pay interest or return on Stablecoins.
In a recent message, the organization argued that the so -called vulnerability may disrupt the credit flow of American companies and families, which may lead to 6.6 trillion dollars in external flows to deposit from the traditional banking system.
Related to: What does the action of US genius mean for stablecoins?
The encryption industry does not enjoy it
The encryption industry pushed back against banks’ concerns, as it urged two organizations in the legislators to reject proposals to close the “gap”. The organizations have warned that the reviews will tend to the stadium towards traditional banks while strangling innovation and choosing the consumer.
The United States government has emerged as a leading supporter of the dollar Stablecoins accreditation. Treasury Secretary Scott Bessin said in March that the United States government will use Stablecoins to ensure that the US dollar remains the world reserve currency in the world. He said at that time:
“We will put a lot of thinking about the Stablecoin system, and as President Trump directed, we will keep the United States (the dollar) the dominant backup currency in the world, and we will use Stablecoins to do so.”
magazine: Crypto wanted to topple banks, and now it’s in Stablecoin fighting
The post Citi Exec Warns Stablecoin Yields Could Drain Bank Deposits: Report first appeared on Investorempires.com.
