Will stablecoins dethrone banks as system relevant?

[WillyAp]

Stable coins are often mimicking the value of the US$.
Outside the "developed" world banks are not as system relevant. Some exceptions are there as we've seen in Paraguay
What is your opinion on stable coins?

Con USDT fail and bankrupt say 50% of Asia's traders?

 

The 2025 GENIUS (Guiding and Establishing National Innovation for US Stablecoins) Act established the first comprehensive US regulatory framework for US dollar (USD)-backed stablecoins, setting the stage for significant growth of these digital assets in the coming years.

source: https://www.economicstrategygroup.org/publication/stablecoins-after-genius-private-money-public-debt-and-the-global-dollar/

In my eyes stablecoins show what a unrestricted $ could do. Banks in the 3rd World are selling $, you need to apply, pay a cut.
Binance, Airtm, Nexo, Crossmint among other using the flow,

interested in more info? https://www.bis.org/publications/dollarisation-and-monetary-control-what-lessons-rise-stablecoins.pdf

[Jubilee58]

Stable coin may not dethrone banks entirely, the reason is because stablecoin is only a digital currency, it can be used for transactions, sustains value, but the demerit is that it is not widely used or accepted by everyone. Majorly, people leave their money in stable coin to avoid depreciation, but bank is known to render services of fiat currency which is a legal tender globally. However, there is still certain level of risk involved in keeping your money both in the bank, and in stablecoin because while the money in the bank can be affected by inflation, and depreciate in value, I have also seen stablecoin deppeged, and also loosing value, although such situation is very rare.

[BIT-BENDER]

First is was will Bitcoin dethrone the banking system, now it's stable coin, I don't agree with that at all, it's very possible that the banking system won't be dethroned and will still be very relevant in the future.
Let's not forget that stable coins has some resemblance with the banking system, stable coins can actually be seized, we can see with the case of the recent hack on binance that some of what was stolen was seized.

I think stable coins can be part of the bank system in the future rather than stable coin dethroning the banking system, it just don't make sense.

[Fortify]

Stable coins are often mimicking the value of the US$.
Outside the "developed" world banks are not as system relevant. Some exceptions are there as we've seen in Paraguay
What is your opinion on stable coins?

Con USDT fail and bankrupt say 50% of Asia's traders?
 

The 2025 GENIUS (Guiding and Establishing National Innovation for US Stablecoins) Act established the first comprehensive US regulatory framework for US dollar (USD)-backed stablecoins, setting the stage for significant growth of these digital assets in the coming years.

Eventually they might, but that will not necessarily be an advantage to the end consumer as they'll still be controlled by a centralized body. Maybe it is more efficient and economical instead of walking around with coins / paper notes in our pockets, but that has to be proven. It also takes large organisations like the EU a long time to roll out such a colossal change. Just look at how long it required to roll out a new border security system recently - it was pushed back 3 times over about 5 years because they couldn't get the adoption quite right and even after the final release it had some pain for a while. Replacing the daily currency that everyone uses is monumental and the trust has to be absolute. Imagine if a foreign power could somehow hack and undermine your whole monetary system, the damage it could do would be unimaginable.

[Kelward]

I think stable coins can be part of the bank system in the future rather than stable coin dethroning the banking system, it just don't make sense.

Remember that banks are innovating, unlike before where we relied on physical cash for our transactions we can now do online banking with ease anywhere that has internet connections so with digital banking I doubt that banks can become become irrelevant. No doubt that stablecoins like USDT and USDC are stepping up, they are quite similar to traditional currencies because they are pegged to a traditional currency which is USD.

Since we can do digital banking what I see in the future is that more banks would be facilitating stablecoins transactions, if that happens stablecoins will indirectly become a part of the banking system so it cannot detrone it's hosts. So in the foreseeable future I don't see stablecoins dethroning the banking system instead there will be a synergy where banking and stablecoins transactions would be by choice for everyone.

[Die_empty]

In my eyes stablecoins show what a unrestricted $ could do. Banks in the 3rd World are selling $, you need to apply, pay a cut.
Binance, Airtm, Nexo, Crossmint among other using the flow,

interested in more info? https://www.bis.org/publications/dollarisation-and-monetary-control-what-lessons-rise-stablecoins.pdf

I am a witness to how the US dollars could be scarce in some countries. Some people that needs the dollars for trade, school fees and other international business would have to access dollars from the black markets. Stablecoin has been a good alternative to fiat dollars because it is accessible to everyone. Many people in my country are converting their fiat to stablecoins, and adoption is also increasing.

One reason why the dollar is still dominant is that some countries or businesses are still not accepting it. Another problem is that these stablecoins cannot be fully trusted. Nobody knows if the reserve assets that the issuers claim they hold, which allow these coins to maintain a 1:1 value with the US dollar, are valid.  

[Charles-Tim]

The banks have started accepting stable coins and using it to make money from their customers.

So will stable coins dethrone banks or fiat?

Stable coins will not take over fiat. They can both exist and stable coin can be an alternative.

There are United States dollar, euro and pound sterling stable coins, but there is no stable coins for most countries. If all countries have stake coins, the banks will make money from it.

[Agbamoni]

No big difference from stablecoins and fiat. Same value, but one is a digital currency pegged to the value of fiat. The statement that stablecoins are dethroning the banking system is not relevant. It's a wrong statement. Perhaps you meant to say fiat money. Nevertheless, stablecoins cannot dethrone the fiat system.

Some banks are now accepting stablecoins from intermediary bodies and microfinance institutions.

[Cryptomultiplier]

In my eyes stablecoins show what a unrestricted $ could do. Banks in the 3rd World are selling $, you need to apply, pay a cut.
Binance, Airtm, Nexo, Crossmint among other using the flow,

interested in more info? https://www.bis.org/publications/dollarisation-and-monetary-control-what-lessons-rise-stablecoins.pdf

I am a witness to how the US dollars could be scarce in some countries. Some people that needs the dollars for trade, school fees and other international business would have to access dollars from the black markets. Stablecoin has been a good alternative to fiat dollars because it is accessible to everyone. Many people in my country are converting their fiat to stablecoins, and adoption is also increasing.

One reason why the dollar is still dominant is that some countries or businesses are still not accepting it. Another problem is that these stablecoins cannot be fully trusted. Nobody knows if the reserve assets that the issuers claim they hold, which allow these coins to maintain a 1:1 value with the US dollar, are valid.  

The main point about stablecoins for me remains how it is immune to local banking corruption whereas CBDCs enable total surveillance of every individual holder or user of it.
Also with stable coins, emerging markets have access to the dollar and this is where traditional banks fail.

[IceLincoln]

Stable coins are often mimicking the value of the US$.
Outside the "developed" world banks are not as system relevant. Some exceptions are there as we've seen in Paraguay
What is your opinion on stable coins?

Con USDT fail and bankrupt say 50% of Asia's traders?

 

The 2025 GENIUS (Guiding and Establishing National Innovation for US Stablecoins) Act established the first comprehensive US regulatory framework for US dollar (USD)-backed stablecoins, setting the stage for significant growth of these digital assets in the coming years.

source: https://www.economicstrategygroup.org/publication/stablecoins-after-genius-private-money-public-debt-and-the-global-dollar/

In my eyes stablecoins show what a unrestricted $ could do. Banks in the 3rd World are selling $, you need to apply, pay a cut.
Binance, Airtm, Nexo, Crossmint among other using the flow,

interested in more info? https://www.bis.org/publications/dollarisation-and-monetary-control-what-lessons-rise-stablecoins.pdf

Stablecoins are pegged to the dollar so it’s difficult to argue that they’re dethroning what they depend on, they offer  easy accessibility and usability for crypto enthusiasts. They’re designed to be alternatives, that provide more convenient ways for transactions, not to dethrone the dollar or traditional banking system.
Yes in some countries having access to a dollar account may have a lot of protocols and documentation you have to go through which is why people often opt for stablecoins to exchange their money or do whatever from the comfort of their homes.
Stablecoins are not without restrictions as you might think as they’re regulated and can be frozen at any time.
These stablecoins are centralised and controlled by a private entity, what happens when let’s say Tether decides they’re no longer confident in their reserves.
Stablecoins are a good alternative but wouldn’t consider them to be used as a store of value or permanent currency

[Zigabel]

This issue of stable coins taken over banks or dethroning them like you have put is something that has been discussed sometimes ago, but then it was related to Bitcoin. I don't think there's any replacement wanting to go on here, except the banks themselves who may want to see these coin as some forms of threat,  I don't think it is an actual threat to them enough to want to dethrone them, literally they could be perfect complement if adopted well enough,  only  that the banks are the ones feeling somehow frightened and wants to work against it, personally i see that they both need each other and not one replacing the other.

That this coins will not be completely decentralized will be a disadvantage on the side of the users because the control they probably have been running away from the bank could actually be experienced again with these supposed stable coins that are centralised.

[WillyAp]

I don't think it is an actual threat to them enough to want to dethrone them, literally they could be perfect complement if adopted well enough,  only  that the banks are the ones feeling somehow frightened and wants to work against it, personally i see that they both need each other and not one replacing the other.

I was thinking more of the lines of locally regional banks. Which have not evolved into internationally connected banking units.
So small that they cannot issue visa nor mastercard cards on their own.

[Plutomanian]

First is was will Bitcoin dethrone the banking system, now it's stable coin, I don't agree with that at all, it's very possible that the banking system won't be dethroned and will still be very relevant in the future.
Let's not forget that stable coins has some resemblance with the banking system, stable coins can actually be seized, we can see with the case of the recent hack on binance that some of what was stolen was seized.

I think stable coins can be part of the bank system in the future rather than stable coin dethroning the banking system, it just don't make sense.

Common you and I know that's not going to happen because the bank operates on traditional payment method but with the way the world is moving and everyone is just adapting, stable coins have future and it's going to be prominent just like Bitcoin. We've seen some European countries adapting crypto as means of payment and before you know it, some of them have already made it their general legal tender. It doesn't take time before crypto dominate the universe.

Banks will continue to work because the government is seriously fighting against crypto being the general legal tender and also finding a way to slow down everything that got to do with crypto. Stable coins will still prevail among all because they have similar features with the banks.

[Zoomic]

First is was will Bitcoin dethrone the banking system, now it's stable coin, I don't agree with that at all, it's very possible that the banking system won't be dethroned and will still be very relevant in the future.
Let's not forget that stable coins has some resemblance with the banking system, stable coins can actually be seized, we can see with the case of the recent hack on binance that some of what was stolen was seized.

I think stable coins can be part of the bank system in the future rather than stable coin dethroning the banking system, it just don't make sense.

I don't even understand the obsession many crypto users have with crypto dethroning the conventional banking system. I don't know who told them that crypto can't grow and become a globally accepted means of exchange in the future and we'll still have traditional finance systems incorporating crypto and still be relevant.

One mustn't dethrone the other to be more acceptable to users. I think we've gone past the era when the governments saw crypto as a huge competitor to traditional banking. Now they've come to understand that the two can work together while gaining more global acceptance.

[asriloni]

Stable coins are often mimicking the value of the US$.
Outside the "developed" world banks are not as system relevant. Some exceptions are there as we've seen in Paraguay
What is your opinion on stable coins?

Any reason why you mentioned paraguay? Their digital bank collapsed, but it's due to the insider fault by give a huge loan to the risky lenders.

So i think i don't see a relationship between it and stable coin.

Con USDT fail and bankrupt say 50% of Asia's traders?

It can't. USDT is basically a dollar in the token form. Even if it goes bankrup, it won't make 50% of asia traders lose their fortune. As long as the each USDT is redeemable to the each dollar.

That scenario is just a delutional thing to happen. I know you talk about the worst scenario but it makes no sense here.

Beside that some stable coin companies already got US national trust license, which is proving stablecoin and bank can be co-exist. The better to stop to think they're against each other.

[WillyAp]

It can't. USDT is basically a dollar in the token form. Even if it goes bankrup, it won't make 50% of asia traders lose their fortune. As long as the each USDT is redeemable to the each dollar.

That scenario is just a delutional thing to happen. I know you talk about the worst scenario but it makes no sense here.

Beside that some stable coin companies already got US national trust license, which is proving stablecoin and bank can be co-exist. The better to stop to think they're against each other.

I'm not saying they are against each other.
The crypto crowds has learned not to leave funds in exchanges, Stabale coins are used in Trade and being kept at exchanges in a sense as savings.
Banks let you save money, stable coins give you a better % as banks, stable coins are easier to pass to a different country  than US dollar via bank transfer.
3rd World banks have a pretty steep price to wire money, from Spain to Panama its €150 per transfer.
The banking body is pretty rigid and the reason bitcoin was created was the difficult banking the year 2000 +.

The banking stablecoin (project faro) : https://ambcrypto.com/tether-loses-6-6b-in-market-cap-as-banks-bet-270m-on-project-faro/
 

[Aliciaworld]

This may be the case when adoption becomes more widespread but the reality where stablecoins will replace banking system entirely is less likely to be. This is because sometimes, people need cash, other times, the other party in the transaction may require that specific payment method. Both can coexist while stablecoins increase in popularity.

[DPHOR]

Sometimes I wonder how people do compare things around the space like I do not understand. What comes into our mind to say that stable coin would dethrone bank as in what ways would stable coin dethrone bank?
To be honest, Stable coin are being backed by US dollar and that is the way the entire system can be able to measure any value that is in digital currency and without that it would be very hard for someone to know what they are sending to people or someone out there. Just as Bitcoin are measure fiat, just for one to know how much they would be sending out they would measure the price to fiat or stable coin before they will know the amount and equivalent of bitcoin they could be send, as a matter of facts bitcoin or digital currency are introduces as an alternative to fiat and there is no way that stable coin would now replace the banking system entirely.

I do not think there is any meaning to this argument.

[Ruttoshi]

Stablecoins are pegged to USD Fiat making it difficult for it to dethrone bank system because banks is in charge of Fiat and stablecoins needs USD. Do you know that your USDT/USDC can be freezed in your wallet and there's nothing you can do about it. There's no coin that will dethrone the bank system because Fiat is of the government and that's what they're using to manipulate the masses to be under them by printing more money to increase inflation.

[WillyAp]

Sometimes I wonder how people do compare things around the space like I do not understand. What comes into our mind to say that stable coin would dethrone bank as in what ways would stable coin dethrone bank?

That people turn to platforms, rather then going to "their" bank. Binance, Nexo among others already have some services a bank could offer.
Banks in the 3rd world are not the same as banks in the 1st world.

In the 1st world you go to the bank and if you wish you buy or exchange 10k Euro in 11k US$ A Dipso credit is almost automatic.
in the 3rd World some banks have allowances most have not, where they have it costs often dearly. Dispo credits are unknown.