Citi Executive Signals Risk: Stablecoin Yields Could Drain Bank Deposits

In a striking warning, a Citi executive cautioned that interest payments on stablecoins may trigger a modern version of the 1980s-style deposit flight from traditional banks. As stablecoins increasingly offer higher yields, they might pull funds out of conventional banking systems, raising serious financial stability concerns .

This highlights the growing regulatory and systemic implications of decentralized finance—remember, crypto isn't just about digital tokens; it's reshaping the fundamentals of how money circulates. A critical reminder that innovation must be paired with regulation and prudence.

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