Matt Hougan, investment director at Bitwise Asset Management, calls on American banks to complain about competition from Stablescoin instead of offering better yields to their customers.
The main dishes to remember:
- The IOC in the direction of the Bit Matt Hougan says that banks should increase deposit rates instead of blaming the stalls.
- He maintains that the Stablecoins will not kill loans, but transfer the credit to DEFI and will benefit the savers.
- With higher yields and lower costs, stablecoins become a more attractive alternative to banks.
“If local banks are concerned about the competition from Stablecoins, they should pay more interest in deposits,” published Hougan on X Tuesday, criticizing the longtime banking model.
“They abuse depositors as a free capital source for decades.”
Stablecoins threaten bank deposits, explains the Bloomberg report
His comments come in response to a recent Bloomberg article warning that Stablecoins, in particular those who offer yields, could disturb traditional banks while moving the deposits.
According to the report, community and regional banks, which strongly depend on customer deposits to issue loans, are particularly vulnerable because they do not have access to wholesale financing markets used by large institutions.
The play echoed the concerns raised by Citi last month, which said that the stable -co -labors could trigger a flood of withdrawals from American banks.
In parallel, banking lobbyists push the congress to tighten the legislation of stables, in particular the rules for targeting performance offers under the Act on Engineering.
Hougan rejected the fears, labeling the idea that the stablecoins will kill the local loan markets as “absurd”.
Although he recognized that fewer deposits could mean a reduction in banks, he argued that capital will not disappear, it will simply circulate through alternative channels.
“People with Stablecoins will provide credit directly to borrowers via DEFI requests,” said Hougan.
“The loser here is banking beneficiary margins. The winner here is individual savers. The economy will be very good. ”
Stablecoin platforms offering yields up to 5%have become more and more attractive because the average US savings account still gives only 0.6%, the highest rates barely 4%, according to Bankrate.
After taking into account inflation and bank charges, many consumers see their savings eroding in real terms, a reality that pushes more savings to alternatives based on crypto.
Supporters of the Stablescoins also praise lower transaction costs, instant transfers and no maintenance costs as key advantages compared to traditional banks.
American banking groups push to close the stable yield make “escape”
Last month, several major American banking associations urged Congress to strengthen the new stablecoin regulations, warning that a difference in the law on engineering could allow issuers to bypass restrictions on paying interest in holders.
The Bank Policy Institute (BPI) said that the current wording of the law leaves room for stable issuers to indirectly offer performance through affiliated exchanges or other partners.
The BPI was joined by the American Bankers Association, the Consumer Bankers Association, Independent Community Bankers of America and the Financial Services Forum.
The Act on Engineering, signed by President Donald Trump on July 18, prohibits issuers from paying interest or yield directly, but does not explicitly prohibit entities related to doing so.
However, users holding USDC de Circle on Coinbase or Kraken can earn yields, creating a competitive alternative to traditional savings accounts.
Meanwhile, the cryptography industry warned that the aggressive efforts of banks to limit stable yields through regulations would stifle financial innovation and consumer choice.
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