US banks lobby to block stablecoin interest over fears of deposit flight (opens in new tab)

(ft.com)

14 pointszvorygin7mo ago7 comments

7 comments

If stablecoins are supposed to be usable as currency, maintain a fixed value relative to a government-backed standard, and also accumulate interest...

... then shouldn't banks just be able to deal in them?

scrubs7mo ago

A currency needs to have a fairly constant value, goods/services priced in currency, and payment accepted in same. No crypto meets that definition.

I'll say the same thing another way: if miners or other crypto enthusiasts thought for a microsecond they could not convert crypto to actual bonafide currency the whole thing would dry up within a month. Because crypto people are hyper focused on getting real cash!

If you're a bank do you wanna really accept crypto as a deposit then pay interest in real currency?

I seriously dislike crypto ... but one would be on safer grounds calling crypto a risky investment or something vaguely asset like ... but not cash.

ozgrakkurt7mo ago

The most common way this exchange is implemented via some entity that has both cash and crypto. You give them crypto and they send you cash, this doesn’t have much to do with banks except this sending of cash mostly happens via a bank system

gus_massa7mo ago

A few "stablecoins" can be used to make deposits with a high interest rate. The assets that back up this interest come from ... ¿thin air? So they collapse sooner or later.

I think there are a few full backed stablecoins without shenanigans, but they are not so popular because you don't get a high interest "without risks".

sc68cal7mo ago

The concern is that the stablecoin doesn't actually have the assets it claims to have.

See: Tether

SilverElfin7mo ago

I’d love to read this article but unfortunately I hit the paywall, and so I’ll just add my generic thoughts based on the headline: this type of lobbying, fear mongering, and manipulation of our political/legal system has gone on for too long. We can’t afford t have that in layers of our economy that are very fundamental to a functioning democratic society, like the banking or payment systems we use. I know we have many banks and credit unions and brokers or whatever to choose from, but I feel like there is no getting away from the truth, which is that there are a few incredibly huge players like JP Morgan Chase, Visa, Mastercard, Blackrock, etc. and everyone else is a small player that’s at best vulnerable and cannot afford to compete fairly with them.

What we really need are all new antitrust laws that are very aggressive, to fine/jail/break up mega corp companies and execs. And heavy regulation so that even if they’re privately owned, they’re under control, and working in the public interest.

j / k navigate · click thread line to collapse