Banks fear stable coins could drain deposits from banks

[Oshosondy]

You can read the news if you click on this link:US banks lobby to block stablecoin interest over fears of deposit flight

The Genius Act did not allow yielding. Banks are allowed to create their own stable coins but they can not pay interest on it.

The banks fear that people will prefer exchanges as people can indirectly stake their stable coins on the exchanges and be yielding for them, therefore they said it can lead to people sending money from their bank account to exchanges, buy coins like USDT or USDC and stake it for yielding.

Why are banks afraid? I thought United States dollar itself can be staked in banks to yield APR. Or they think people will just leave USD and turn to only USDT, USDC and other stable coins?

Or why did they not let Trump know that Genius Act should also allow yielding instead. Or is this what they are indirectly implying?

[Ojima-ojo]

Banks run on interests and for that reason their are also after the charges the get from the customers and even though their have a stable coins, their interest generation and operations that generate the interest their could pay to customer holding those banks stable coins can't be compared to that of an exchange.


Take for example, how many Banks can generate the daily trading and staking and other Centralized exchange like binance volumes and cap.

[Joy_learns_crypto]

Banks run on interests and for that reason their are also after the charges the get from the customers and even though their have a stable coins, their interest generation and operations that generate the interest their could pay to customer holding those banks stable coins can't be compared to that of an exchange.


Take for example, how many Banks can generate the daily trading and staking and other Centralized exchange like binance volumes and cap.

Yea you are right, but it can simply be that people are tired and sick of banks BS. Banks can be inconsistent and people don’t find their services attractive. Looking at the long term challenges that can come from banks is enough to for exchanges.

[Oshosondy]

Banks run on interests and for that reason their are also after the charges the get from the customers and even though their have a stable coins, their interest generation and operations that generate the interest their could pay to customer holding those banks stable coins can't be compared to that of an exchange.


Take for example, how many Banks can generate the daily trading and staking and other Centralized exchange like binance volumes and cap.

In my country, there are banks that generate interest also.

I do not know of United States, the fintechs in my country can give as high as 20% up to certain amount, and 9 to 10% if that amount is exceeded.

There is even one with premium features in a way that you can save up to certain amount for 7 to 15 days and earn up to 36%.

The commercial banks should try and step up.

I think you are right though because commercial banks here are frustrating, although most people are using the account that have no yield and the banks will be the one that will be deducting customers money instead and call it maintenance charges.

The banks should step up or they will be obsolete in some areas.