**Arthur Hayes Projects Bank-Backed Stablecoins Will Excel**
BitMex founder Arthur Hayes projects that bank-backed stablecoins have the potential to outshine Circle's USDC. This was revealed by Hayes after the Genius Act Bill advanced to the US Senate.
According to Hayes, the advantages of banking regulations, capital resources, and the trust of the traditional financial system will cause the USDC market to decline, especially in the future.
This is further reinforced by the fact that if the Genius Act is enacted, stablecoin issuers will have to maintain a 10% reserve licensed by the Federal, particularly to give banks a clear path for issuance.
Additionally, Hayes estimates that bank-backed coins could capture up to 20% of the current stablecoin transaction volume. This would equate to US$20 to US$46 billion in its first year.
SOURCE: Academy crypto
