Is it possible stable coins could have their own bank?

[mr_random]

They could have their own bank but that’s not the goal of stablecoins. When stablecoins were first released it was so users could transfer money from exchanges such as Bitfinex to exchanges which had tons of altcoins which the bigger exchanges didn’t have.

So the user wouldn’t need to sell their US dollars, buy bitcoin, send bitcoin to some alt exchange and then sell that bitcoin for US dollar and finally buy what alt coin they want. This is too many transactions and hence why stablecoins were introduced because you could send back and forth between exchanges.

There is no point is having a bank for stablecoins however. Just send to your exchange, sell for fiat and withdraw that fiat to your bank and buy whatever you want.

Maybe not the first goal but stablecoins have changed the cryptocurrency world, simplified value transfers between exchanges. This is just the beginning of their potential. Acting as digital cash, stablecoins are setting the stage for a new era in financial services. We are already seeing the rise of crypto lending platforms and interest-bearing stablecoin accounts, which are early indicators of a broader evolution. These platforms, though not traditional banks, offer core banking functions like secure storage, yield generation, borrowing, and seamless payments, as far as I know. This trend reflects the growing integration of crypto with traditional finance, as institutional investors enter the space and regulators work to adapt.
Dedicated stablecoin institutions could bridge the gap between these two worlds, providing regulatory clarity and a familiar interface for traditional finance players, IMO. They would also streamline the currently fragmented stablecoin services, offering users a one-stop shop for their financial needs.While "bank" might not be the perfect term, the concept holds great promise. The crypto world often exceeds expectations, and the rise of stablecoin-centric financial institutions seems likely in the coming years, ushering in a new era of financial innovation

[AVE5]

Is it possible stable coins could have their own bank since they are backed by a country's currency like the U.S Dollar which they use to maintain a stable value?

Or also, knowing that stablecoins are different from cryptoassets which do not have assets as backings and are more volatile, will in the future, the success of stablecoins not call for something like a bank or a recognized office building built to show legalization and acceptance as a means of payments for transactions and services?

I may not know about the possibilities for the provision of banks for stable coins but my intake is that it doesn't seem a necessary idea to such development since it's a currency embarking crypto assets. It's also referred as digital currency even though it's not volatile so the possibility of bringing the stable coind in a physical form as the fiats is assumed that the latter could also be achieved in the physical form which is impossible. Hence, the stable coin isn't useful without the cryptocurrencies.

[benalexis12]

Is it possible stable coins could have their own bank since they are backed by a country's currency like the U.S Dollar which they use to maintain a stable value?

Or also, knowing that stablecoins are different from cryptoassets which do not have assets as backings and are more volatile, will in the future, the success of stablecoins not call for something like a bank or a recognized office building built to show legalization and acceptance as a means of payments for transactions and services?

I think it is possible for the bank to have their own stablecoins, because here in our country there is a bank named Unionbank, and it created its own stablecoins, and crypto enthusiasts have not noticed or felt it much because the crypto community here in our country still wants to invest cryptocurrency instead of their stablecoins.

Then we also know that the majority of stablecoins are centralized, although I also know that there are stablecoins in DEX that are not the same as in centralized-based systems.

[muncuss]

I think what you're describing is pretty much a CBDC.

I dont think he mean CBDC as it is already a cryptocurrency of a bank. I think more of like DeFi than CBDC, as even now many token or platfrom provide service like a bank like those lending platform

[Webetcoins]

Is it possible stable coins could have their own bank since they are backed by a country's currency like the U.S Dollar which they use to maintain a stable value?

For any coin to have its own bank they don't need to be "backed" by anything. The criteria is to be centralized which stablecoins already are. That means the answer is yes they can have their own bank.

After all the dollar itself is not backed by anything and it has its own banks simply because it is centralized!

This is exactly why there is a flaw in this design. You see centralization and blockchain technology don't mix well. It is like addition of contradictions!

By the term "Own Bank" I think it means a store of value but isn't all currency and assets have this already? Banks are known to be centralized but I think a decentralized bank is also possible. Dunno bout you but I think dollar is backed by something and anything that are legit is also like it. The backer of dollar can be literally banks and maybe the governments too?

Nothing is perfect in this world but each must have their own flaws. We only need to accept this reality or we can still go for the other if we don't like what the other is offering. I am sure we are not forced to use them. Blockchain itself must offer transparency and so as centralization. They do mix well actually.

[khiholangkang]

I think what you're describing is pretty much a CBDC.

Exactly, he is describing a CBDC issued by a central bank, eg. the European Central Bank.
However, centrally issued CBDCs are the subject of much controversy, primarily due to their programmability (which ECB boss Lagarde, for example, has described as a "major breakthrough") and the resulting process of displacement of traditional currencies and cash.

Maybe this will be a different statement when we read it correctly, such as “is it possible for stablecoins to have their own banks” and the phrase “banks have their own stable coins' which we know with CBDC which is still under construction, but if you look at the context that might fit the title of the thread is ‘is it possible for stablecoins to have their own banks’ it's like USDT, USDC, FDUSD and other stable coins that are not born from banking institutions like CBDC, get their own banks or they create banks after they launch stable coins first before building their bank institutions.

I think it is quite difficult because the administrative process and so on need to have attachments with the government and others but it is not impossible to do.

[Peanutswar]

Im not professional but I guess banks will just operate with the fiat currency of their country as part of their regulations, possible if they are not direct banks like the finance companies like third parties supporting the use of the crypto that they can operate their own currencies, here in my country the team of coins.ph offering now a stable coin which is the PHPC as per them its the same like the bank or what OP says would like but it's not direct as came from the bank this thing is currently cooking here if they will make an immediate implementation.

[Cryptomultiplier]

I think what you're describing is pretty much a CBDC.

Or also, knowing that stablecoins are different from crypto assets which do not have assets as backings and are more volatile, will in the future, the success of stablecoins not call for something like a bank or a recognized office building built to show legalization and acceptance as a means of payments for transactions and services?

I don't think it even matters much of stablecoins have their own bank. What matters most is that they have proof that these stablecoins actually have a 1:1 backing on whatever bank as long as the bank is decent.

I just want to point you to a core difference between Stablecoins And CBDCs according to the link below and also what Defi stands to represent:
https://www.ccn.com/education/stablecoins-vs-cbdcs-similarities-and-differences/

Stablecoins are often distributed by private organizations or businesses. Various types of oversight may include self-regulation by the industry.

Whereas, CBDCs are issued by central banks or governments and are strictly governed and regulated by them. Stablecoins is the pillar of decentralized finance, DeFi.

Historically, BTC has served mainly as a passive store of value, not actively involved in DeFi security or commerce. Yet, much like ETH's dual role in securing Ethereum and serving as currency, bitcoin has the potential to evolve into a versatile asset beyond the base Bitcoin chain.

DeFi is the environment that facilitates Bitcoin transactions between two individuals or parties.

[Solosanz]

By the term "Own Bank" I think it means a store of value but isn't all currency and assets have this already? Banks are known to be centralized but I think a decentralized bank is also possible. Dunno bout you but I think dollar is backed by something and anything that are legit is also like it. The backer of dollar can be literally banks and maybe the governments too?

Decentralized bank do exist, it's Bitcoin.

Dollar is backed by "trust", if all people in the world didn't trust Dollar anymore, Dollar will become worthless since the thing that backed Dollar is gone. After that banks will collapse since people will withdraw all of their money and they will not trust in government anymore.