US Banks Warn Washington: Stablecoins Pose Threat to Traditional Banking System

The banking sector in the United States is facing a new challenge with the growing popularity of stablecoins, digital tokens pegged to the dollar that offer interest rates between 4% and 8% annually. Major banks warn that if these instruments become widespread, up to $6.600 trillion could leave traditional bank accounts, reducing the resources available for lending.

Stablecoins are currently used primarily by those already involved in the cryptocurrency ecosystem as a stable digital currency for purchasing other tokens or moving funds between platforms. However, they have also begun to be seen as a way to store digital dollars and earn a return, often linked to the interest generated by US Treasury securities or cryptocurrency lending platforms.

The main problem facing traditional banks is the creation of a parallel banking system with fewer regulations. Executives at JPMorgan Chase warn that instruments with deposit-like characteristics but without prudential safeguards could increase risks for savers and the stability of the financial system.