Stablecoins pose a theoretical risk to bank deposits, but their practical impact might be limited. The FT argues that yield alone won’t drive adoption; convenience matters. For now, deposits likely reshuffle, but future regulation could increase competitive pressure.
The reasoning rests on a deposit-recycling assumption: if a depositor at Bank A withdraws cash to buy a stablecoin, the stablecoin issuer uses that cash to buy Treasury bills from...
https://www.ft.com/content/172d717c-ca98-453c-9c44-f13e2342e231?syn-25a6b1a6=1
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