Stablecoin Risks: Banks Concerned About Potential Deposit Drain

Banking institutions express concerns over stablecoins draining deposits, yet experts suggest evidence of this is currently minimal.

Financial institutions are increasingly voicing apprehensions that stablecoins might divert deposits away from the traditional banking sector. However, analysts and regulatory specialists contend that there is scant evidence supporting the notion that stablecoins are significantly impacting bank deposits at this time.