Will stablecoins dethrone banks as system relevant?

[Mr_Brilliant$]

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.

Yes Bitcoin will not dethrone anybody or institution. As we are seeing the world now, it is actually working in hands with the currency. Most people use it for hedging against inflation. We still going to use money issued by the banks. Let's pause for a second. Stablecoins are pegged to the dollar and it will still suffer at the hands of inflation. I see that coin as a dollar coin and nothing like cryptocurrency even though it is one. With all the hacks that is going on, i hope people won't start disbelieving in the future of cryptocurrency.

[danherbias07]

I doubt that.

If stablecoins will dethrone the banks, there will be a problem for government officials trying to evade their taxes by  spinning the money from their fiat currency to USD. This is why many government officials are still against using the blockchain and cryptocurrencies. Everything there is public, which is the opposite of physical banks.
There, no one can know how much money you have unless it's the end of the year and they need to pass their statement and liabilities. So even if stablecoins rise above, there will still be users of banks and those who will prefer it traditionally.

[slapper]

The banks have started accepting stable coins and using it to make money from their customers.
[...]
Stable coins will not take over fiat. They can both exist and stable coin can be an alternative.

Banking regulations surrounding stablecoins were purposefully designed to protect banks' role around them. So to say that banks are accepting stablecoins just for a small fee is only half the story. I think Charles-Tim has a point when he said banks aren't going anywhere.

Under GENIUS, stablecoin issuers cannot promise interest payments to you, the token holder. How much incentive does that give the average American to keep his savings in a dollar token that promises him a return of zero? Basically it’s just a checking account without FDIC insurance so I don’t see anyone doing that.

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.

The Paraguay case isn’t about USDT per se, as asriloni has pointed out, but there will always be demand for USD stablecoins because, for many outside the US, USDT remains the best way to hold USD on chain. Questions will inevitably be asked about the next move after people saw the failure of a digital bank boasting millions of customers, the owners found to have betrayed their customers' trust by lending money to their own firms and leaving pension funds stuck in limbo, with accounts now frozen. Will Paraguayans trust the next local bank, or continue to embrace USD on chain, now out of reach of local bankers?

In the US, where banks are fairly stable, regulators make sure to keep stablecoins as boring as possible, to protect the banks. In some poorer countries, though, where banks are definitely not stable, stablecoins become the boring, stable thing, while banks are the risky option. It’s the same stablecoin, but it plays very different roles depending on where you are. Banks in Lagos or Asuncion are now earning money through fees for converting stablecoins in and out, because people there use stablecoins as a more stable store of value than a local bank account.

[WillyAp]

I doubt that.

If stablecoins will dethrone the banks, there will be a problem for government officials trying to evade their taxes by  spinning the money from their fiat currency to USD. This is why many government officials are still against using the blockchain and cryptocurrencies. Everything there is public, which is the opposite of physical banks.
There, no one can know how much money you have unless it's the end of the year and they need to pass their statement and liabilities. So even if stablecoins rise above, there will still be users of banks and those who will prefer it traditionally.

Banks do not print money, central banks order the printing process. National or the one in the UK they use.
So governments can direct the companies which are dealing the currency. We should all remember that the institutions are dissolving themselves.
The EU is unable to enforce their own sanctions, a toothless tiger who just over regulates its citizen.   

[BigTarget]

I doubt that.

If stablecoins will dethrone the banks, there will be a problem for government officials trying to evade their taxes by  spinning the money from their fiat currency to USD. This is why many government officials are still against using the blockchain and cryptocurrencies. Everything there is public, which is the opposite of physical banks.
There, no one can know how much money you have unless it's the end of the year and they need to pass their statement and liabilities. So even if stablecoins rise above, there will still be users of banks and those who will prefer it traditionally.

Banks do not print money, central banks order the printing process. National or the one in the UK they use.
So governments can direct the companies which are dealing the currency. We should all remember that the institutions are dissolving themselves.
The EU is unable to enforce their own sanctions, a toothless tiger who just over regulates its citizen.   

This is exactly why I believe that this whole "will fiat be gone one day" thing is so boring and not understanding the full concept of what fiat is. Fiat isn't just for you to be able to buy something or sell something; it's not just a ledger; that's not the point. In fact, if it was only that, we would all be getting rid of cash already; how many people even pay cash anymore?

Every single human in major nations (sure, maybe not small countries with a lack of internet everywhere) would just destroy all fiat in paper form, and would have cards and apps for it. That's not it; fiat is basically a way that the government controls its people, otherwise is not going to be easy at all, we can't really focus on this at all. Fiat will ALWAYS stay.

[Oshosondy]

If stablecoins will dethrone the banks, there will be a problem for government officials trying to evade their taxes by  spinning the money from their fiat currency to USD.

USD is one of the fiat. I do not know what you meant.

I do not have much to post about this than stable coins that are fiat pegged can not replace fiat. People can not be using stable coins for everything. Some people are still using cash to pay and some people just prefer the fiat.

If stable coins is becoming a threat to fiat, the government will do things that will discourage people using it and use fiat more.

The money that a country will spend most is their legal tender and which are fiat.

[Don Saga]

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.

I would aways say that fiat currency and digital stable currency is in no competition to decide which is more relevant. Both of them can function independently of each other and still provide same amount of value in each case. Stable coins overthrowing the fiat currency is a case of currency substitution where people prefer to use the stable coins over fiat currency on all payments.

But will a situation where the workers and tenants demand to use USDT as payments mean ever come?

[Adiljutt156]

Stablecoins are going to reduce people's dependence on old and traditional banks, especially in those countries where it is difficult to access foreign currency or it is expensive. Dollar transactions will be faster and more accessible without even going through the banking process. But they cannot replace banking system completely because people are dependent on reliable institutions for taking loans, finding finances for their businesses and other services. Trust and centralisation are bigger concerns. Dollar results are backed by ustd but people are still dependent on issuer in order to maintain those reserves. The impact is going to be massive on Asian traders and businesses if Tether suddenly collapsed. I think stablecoins are going to be important part of financial system and it is also going to change how the banks operate rather than just completely abandoning them.

[Crypto_Timothy]

I doubt the banking system is going anywhere actually because alot of the rich still use it for their businesses and of course it has its perks, i doubt if they will ever want to let it go but for sure im certain that the adoption will increase, already some banks in some places are already reporting low users as some person prefer keeping money online, like me now, i have just a few cash in the traditional banks in my country and thats just so in just and because i have thier cards, so just incase becuase you can never be too sure but majority of my funds are online and i know most person do this too but the relevance of the bank will always be there especially those big banks used by the rich for their businesses.