The rise of stablecoins, particularly those offering real yields, is poised to trigger a significant shift within the traditional financial landscape. This innovative digital asset class is expected to exert immense pressure on established banks, compelling them to re-evaluate how they attract and retain customer deposits.
Stablecoins Challenge Low-Yield Deposits
According to Patrick Collison, CEO of Stripe, stablecoins—tokenized versions of fiat currencies on blockchains—will ultimately force conventional banks and financial institutions to provide genuine returns on customer deposits. Collison points out the stark contrast between the minimal average savings rates currently offered by traditional banks (0.40% in the US, 0.25% in the EU) and the potential for market-rate yields through stablecoins. He argues that depositors are entitled to, and will increasingly demand, returns closer to market value, framing the banks' reluctance to offer better yields as a "losing position" in the long run.
The Banking Sector's Resistance and Future Outlook
This competitive threat has not gone unnoticed by the traditional banking sector, which has actively lobbied against stablecoins offering interest. Efforts, such as advocating for provisions within the GENIUS law, aim to restrict any rewards associated with stablecoin deposits. Banks and their congressional allies express concerns that yielding stablecoins could undermine the existing banking system and erode their market share, as customers would lack an incentive to keep funds in low-yield traditional accounts. Despite this resistance, prominent figures in the crypto industry view the proliferation of stablecoins as a logical evolution, predicting a future where even traditional fiat currencies might be tokenized as stablecoins, fundamentally transforming the global financial architecture.
