stableCoin

Listen, I've come across an interesting story that's unfolding in the United States right now. We are talking about money, banks, and the very stablecoins that everyone is talking about. This is not just technical news, this is a real financial battle, and the outcome could affect us all.
What is the problem?
Imagine this: the big American banks started sounding the alarm. They claim that stablecoins (these are cryptocurrencies whose value is pegged to conventional currencies, such as the dollar) are a direct threat to them.
Why? They are afraid that people and companies will massively start transferring their money from ordinary bank deposits to stablecoins. But why? Because stablecoins can often offer a higher percentage of income or simply more convenient and faster transfers.
Banks estimated that in the worst case scenario, they could lose up to $6.6 trillion in deposits. This is an astronomical sum!
Why is this such a disaster for banks?
Everything is simple here. Banks don't just keep our money. They use them to give loans to businesses and people for the purchase of houses, cars, and business development. If you take most of the money from the banks, they will have nothing to give these loans for.
What should they do then? They will either have to:
Drastically raise interest rates on deposits to keep our money (which will hit their profits).Or borrow money on the wholesale market at higher interest rates.
In any case, the result is the same: loans will become more expensive and less affordable for everyone. That is, a mortgage, car loan, or small business loan will cost more.
The parties to the conflict
Banks: Their position is "This is dangerous for the entire financial system!". They are already demanding that Congress pass laws that will limit the ability of crypto companies to pay interest and prevent crypto banks from expanding. Small banks that work with local communities are especially panicking.Crypto companies: Their position is "Banks are just protecting their monopoly!". They claim that stablecoins are simply a more modern, efficient, and consumer–friendly technology. Why limit innovation and choice?
What will happen next?
This fight has already gone far beyond a simple dispute. The question of who will manage the money of the future is being decided. Banks insist that any digital assets must play by the same strict rules as traditional finance. The crypto industry has a powerful lobby and support at the highest level, up to the White House.
It turns out that we are witnessing the beginning of a full-scale war between the old financial system and the new digital one.
Who do you think will eventually win this war for our wallets: traditional banks with their stability and regulation, or innovative stablecoins with their efficiency and freedom?
#stablecoin #Stablecoins #CryptoNewss #banks