🔎 A senior Citi executive has raised concerns that stablecoin interest payments could create major challenges for the traditional banking sector.
📌 According to the analysis, as stablecoins like USDT, USDC, and others begin offering competitive yields, users may prefer to park their funds in these digital assets rather than in traditional bank deposits. This shift could trigger bank outflows, reducing liquidity and impacting banks’ ability to lend.
🏦 Historically, banks have relied on deposits as their core funding source. But with blockchain-based assets offering faster settlements, 24/7 accessibility, and now interest-earning opportunities, the competition is heating up.
⚡ What makes stablecoins attractive is not only their price stability but also the ability to integrate with DeFi protocols for higher returns. This evolution could redefine how people store value and access financial services.
🌍 For crypto investors, this signals a growing recognition by global financial institutions of the real disruption power of stablecoins. While regulators debate policies, stablecoins are increasingly becoming a bridge between traditional finance (TradFi) and the crypto economy.
🚀 The takeaway?
Stablecoins are no longer just a medium of exchange — they are emerging as a serious alternative to savings accounts, potentially reshaping global banking and investment strategies.
#Stablecoin #CryptoNews #DeFi #BinanceSquare
